Measuring the impact of trade finance on country trade flows - a South African perspective

University of Pretoria-  Measuring the impact of trade finance on country trade flows : a South African perspectiveKohler, Marcel; Saville, Adrian- 2011

Trade finance (or short-term credit) plays a crucial role in facilitating international trade yet is particularly vulnerable to financial crises as banks increase the pricing on all trade finance transactions to cover increased funding costs and higher credit risks. Whereas South Africa’s financial institutions largely managed to strengthen their capital positions during the global financial crisis, the country’s trade flows and access to capital (in particular trade finance and its costs) were hard hit by the crisis. Little is known about the extent of shortages or ‘gaps’ in trade finance and the impact of this on South Africa’s recent trade performance. Whilst our research recognises that access to trade finance is not the main cause of South Africa’s trade contraction, our research suggests that all else equal, a one percentage point increase in the interbank lending rate of our trade partner could reduce exports by approximately ten per cent.

With global trade flows shifting, and intra-regional trading becoming ever more prevalent, the world is watching Africa as an emerging global force.

Trade finance in Africa is growing as a force to be reckoned with, and the world’s eyes are fixed on Africa to see what it will present to the global market. Sharing a South African perspective, speakers addressing the Trade Finance Conference taking place on 5-6 November 2014 will discuss who the key-players are in African intra-regional trade; leading African and emerging trade hubs, as well as the still untapped opportunities for intra-regional trade.

“The speaker panel will engage with conference attendees, sharing key trade finance awareness’s and outlooks for the future,” says project manager, Jason Joseph. “Attending the conference will be a great opportunity to network and build industry contacts,” says Joseph, “while getting a global view on trade finance.”

Jason Joseph, project manager can be contacted on 011 803 1553 or email This email address is being protected from spambots. You need JavaScript enabled to view it. for details on speaker opportunities. For marketing, sponsorship and exhibitions, email Sian Wirth This email address is being protected from spambots. You need JavaScript enabled to view it.