The report published last May by the Foundation for International Development Studies and Research (FERDI) notes that the low share of trade supported by financing is partly explained by the fact that many importers and exporters have given up applying for financing from banks, due to high collateral requirements, rates high interest rates and previous rejections

In the four largest ECOWAS economies, namely Nigeria, Côte d'Ivoire, Ghana and Senegal, trade finance covers only 25% of merchandise trade flows, according to the report.

Entitled “Supporting trade finance for the expansion and diversification of international trade in West Africa”, the report is based on the results of a survey conducted by the World Trade Organization (WTO) and the International Finance Corporation (IFC) among all 78 banks operating in these four countries called Cedeao-4

This survey established that the total size of the ECOWAS-4 trade finance market in 2021 was $42 billion, supporting only 25% of the merchandise trade flows ($168 billion) from these countries that year.

However, there are significant differences between the four countries. In Ghana, trade finance covers 41% of merchandise trade flows compared to 33% in Côte d'Ivoire, 21% in Nigeria and 15% in Senegal. The trade finance coverage rate in the four countries studied is thus well below the continental average estimated at around 40% and the levels recorded in advanced countries, which range from 60 to 80%.