GHIB upscales African correspondent banks to boost trade finance
In a bold move, Ghana International Bank (GHIB) is bucking the trend of foreign banks exiting African markets due to de-risking strategies.
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Instead, GHIB is upscaling the capacities of correspondent banks in Africa to ensure high standards of compliance, facilitating cross-border trade and filling a critical gap in trade finance.
At the CNVERGE conference in London, CEO Dean Adansi highlighted GHIB's commitment to building capacity in the region, leveraging its regional expertise and robust network.
Unlike other banks that retreated during Ghana's financial crisis, GHIB continued to finance trade, demonstrating its dedication to promoting trade activity.
GHIB's CNVERGE initiative aims to harness its experience and network to foster African trade growth, addressing the significant trade finance gap estimated to be around $120 billion.
By training and upscaling correspondent banks, GHIB is positioning itself as a pivotal player in shaping the future of African trade, defying the industry trend of de-risking and withdrawal from the continent.
The inaugural CNVERGE conference brought together over 60 corporates, sovereigns, and banks from the UK and Sub-Sahara Africa, with high-level representatives from central banks and trade attaches in attendance.
GHIB's pioneering approach is set to revolutionize trade finance in Africa, empowering businesses to access vital funding and unlock their full potential.
Dean Adansi said the bank was positioning itself to fill the critical gap.
“At a time when other financial institutions have de-risked and exiting the Sub-Saharan Africa region, GHIB has elected to build capacity in the region and finance trade on the continent,” he noted.
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“During the recent financial crisis in Ghana, GHIB continued to finance trade even as other banks retreated and de-risked,” he said.
Given the important role of treating advancing growth in our markets, he said it was imperative to find and implement solutions to promote trade activity.
“I think the biggest question to keep in mind as we explore and discuss species related to trade of this conference is how best to play our part in growing trade in our markets,” he said.
He added that Ghana International Bank (GHIB), through its CNVERGE conference, was committed to being a pivotal player in addressing those challenges and shaping the future of African trade.
With a whopping $90 billion annual deficit, the continent's small and medium-sized enterprises (SMEs) struggle to access vital trade finance. GHIB, a leading pan-African financial institution, has emerged as a beacon of hope, filling this critical gap through its innovative approach to risk management, training, and upscaling the capacities of correspondent banks.
In his address the First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari highlighted GHIB's strategic importance in maintaining a critical trade bridge, underscoring the bank's commitment to regional economic growth.
GHIB's impressive trade finance portfolio growth, coupled with its extensive network of over 20 correspondent banks across Africa, has made it a vital partner in Ghana and West Africa's economic development.
The conference, themed "The Risk/Opportunity Interplay for African Trade," brought together industry leaders from over 60 corporates, sovereigns, and banks operating in the UK and Sub-Sahara Africa.
GHIB's CNVERGE initiative is poised to harness the bank's expertise and network to foster African trade growth, driving economic development and prosperity in the region.
By leveraging its pioneering efforts, GHIB is set to revolutionize trade finance in Africa, empowering SMEs and corporates to access vital funding and unlock their full potential. As a true pioneer in African trade finance, GHIB's impact will be felt for generations to come.