Bank Recapitalisation Could Bridge $120B African Trade Finance Gap, Says Afreximbank

Afreximbank has advised the Nigerian government to use ongoing bank recapitalisation as a strategic tool to address Africa’s $80–120 billion annual trade finance gap. Speaking at the Ecobank Customer Forum in Lagos, Dr. Yemi Kale, Afreximbank’s Group Chief Economist and Managing Director for Research and Trade Intelligence, highlighted that stronger banks could reposition Nigeria as a leading engine of intra-African commerce.

Dr. Kale emphasized Nigeria’s unique advantage as Africa’s largest economy and consumer market, saying its capacity to mobilize capital and support domestic producers could reshape the continent’s trade outlook under the African Continental Free Trade Area (AfCFTA) framework. “Nigeria has a big domestic market and a potential regional market. The policies stabilizing the macroeconomic environment are helpful, and we must keep faith with reforms,” he noted.

The economist stressed that bridging the continent’s trade finance shortfall requires banks with deeper capital buffers and a willingness to lend more aggressively to exporters and SMEs. “Recapitalisation of banks is vital. You cannot support business growth or import machinery without enough capital,” Kale stated, pointing to the need for an intra-African banking base capable of financing domestic industries and scaling export-oriented production.

Linking banking sector reforms to Nigeria’s ambition of a $1 trillion economy, Kale said competitiveness and productivity must drive growth. Addressing infrastructure gaps, regulatory bottlenecks, and logistics constraints would reduce production costs, control inflation, boost purchasing power, and create jobs. “Fix the ease of doing business, reduce costs, and you stimulate higher production, income, and economic growth,” he explained.

The forum also highlighted Nigeria’s reliance on exporting raw materials while importing finished goods, a symptom of weak domestic competitiveness. Ecobank Nigeria’s Managing Director, Bolaji Lawal, noted that the bank’s pan-African presence across 33 countries enables it to facilitate cross-border trade. Complementing this, CBN officials stressed that stronger regional coordination and financial integration are key to unlocking Africa’s trade potential and deepening intra-African collaboration.

source: The nation