The $2.5 Trillion Trade Finance Gap And Its Impact on African Producers

S M
Jul 2
2 min read

Introduction

Trade is a powerful driver of economic growth, yet millions of producers across Africa remain locked out of global markets. The reason? A lack of access to capital.

According to the Asian Development Bank, the global trade finance gap reached $2.5 trillion by 2022, a staggering figure that continues to rise. And African producers are among the hardest hit.

What Is the Trade Finance Gap?

Trade finance covers the short-term credit, guarantees, and risk mitigation instruments that producers need to fulfil export contracts. Without it, even the most capable suppliers can’t deliver.

The gap represents the unmet demand for this financing, a demand concentrated in emerging markets, especially sub-Saharan Africa.

Why African Producers Are Disproportionately Affected

Several systemic barriers make financing inaccessible for African exporters:

Perceived risk: Banks label many African markets as high-risk, raising rejection rates.
Lack of collateral: Small producers often can't meet bank requirements.
Complex compliance: Meeting KYC/AML and export regulations adds friction.
Limited local infrastructure: Fewer trade finance providers on the ground.

As a result, up to 50% of trade finance applications from SMEs in Africa are rejected, leaving orders unfulfilled and buyers underserved.

Real-World Consequences

Producers can’t accept large export orders due to lack of working capital.
Buyers are forced to source from costlier, more established regions.
Entire regions miss out on hard currency inflows and economic development.

How Logridge Is Closing the Gap

At Logridge, we don't wait for traditional banks to catch up. We actively:

Partner with alternative finance providers, DFIs, and private funds.
Structure pre-shipment and post-shipment financing solutions.
De-risk transactions through compliance, logistics, and contract management.
Align financing with real buyer mandates not speculation.

This creates a viable, fully managed route for both buyers and producers to participate in international trade.

Conclusion

The $2.5 trillion trade finance gap isn’t just a number, it’s a structural failure that demands new models and partnerships.

If you're a buyer trying to secure emerging market supply, or a producer struggling with finance to fulfil orders; Logridge can help bridge the gap.