In this exclusive interview, we discuss emerging trends and opportunities in Africa’s trade finance landscape, the bank’s next-generation technology-led initiatives, the crucial role of cloud computing, lessons learned from cloud-led transformation, and how AI technologies align with the bank’s broader strategic goals with Denys Denya, Executive Vice President, Afreximbank.
As Africa continues to expand its trade finance landscape, the dynamic economic conditions and a burgeoning digital economy present unique opportunities and challenges. Driven by a strategic focus on boosting intra-African trade, enhancing liquidity, and reducing trade-related risks, the continent’s trade finance space is evolving rapidly. How AfreximBank contributes to this evolution?
African Export-Import Bank (Afreximbank, “the Bank”) is a Pan-African multilateral financial institution mandated to financing and promoting intra- and extra-African trade. For over three decades, we have transformed the structure and composition of African trade by accelerating industrialization and promoting intra-regional trade while driving economic growth.
Afreximbank’s leadership in Africa’s trade finance is rooted in its innovative approach, strategic partnerships, and deep understanding of the market. We continuously implement financial solutions to meet the continent’s evolving trade finance needs, with a strong focus on enabling the African Continental Free Trade Area (AfCFTA).
In my role as Senior Executive Vice President, I oversee the Bank’s day-to-day operations covering Finance and Treasury, Credit Risk Management, Banking operations and Trade services, including payments, client relations and research and international cooperation, ensuring that our strategic objectives are implemented efficiently and in an effective manner. I also oversee our technology division, which is instrumental in our digital transformation journey and in enhancing customer experience.
Could you share key trends, opportunities, and challenges shaping the trade finance business in Africa and where does Afreximbank stand in their digital transformation journey?
At Afreximbank, we are committed to improving service delivery for our corporate, sovereign and sub-sovereign clients by deploying appropriate technologies and leading Africa’s digital transformation in trade finance. Our Africa Trade Gateway (ATG) ecosystem is a testament to this commitment. We aim to build a fully integrated digital environment that not only meets the immediate needs of businesses but also anticipates future demands as African trade continues to grow and evolve.
Intra-regional trade in Africa is relatively low at 15% compared to 59% in Europe, 51% in Asia, and 37% in North America. Despite various initiatives to facilitate a seamless flow of goods and services across Africa, the continent still faces several challenges including inadequate financing, lack of appropriate cross-border payment systems, poor market access for African producers, tariff and non-tariff barriers to trade, export supply constraints, limited economic diversification, high product concentration, poor infrastructure, unfair historical trading patterns, and conflicting regulatory issues.
Encouragingly, trade finance in Africa is evolving rapidly as financial institutions, and other intermediaries accelerate their digital transformation to meet the demands of businesses for efficiency, speed, and transparency. At Afreximbank, we recognize the transformative power of digital technologies in reshaping trade and the way we deliver on our mandate, driving us closer to our strategic objectives.
What next-gen technologies is AfreximBank adopting to stay ahead in this ever-evolving landscape.
- Africa Trade Gateway (ATG): One of our flagship initiatives, a digital ecosystem designed to simplify and enhance trade across the continent. ATG brings together solutions such as the Pan-African Payment and Settlement System (PAPSS) for streamlined cross-border payments, ATEX for B2B e-commerce, the MANSA platform for due diligence and compliance, and Trader Club (Trade Information and Regulatory platform).
- Adoption of AI for Supply Chain Prediction and Analysis: We’ve integrated artificial intelligence within ATG to enhance supply chain predictions and analytics. This enables African businesses to better respond to market demands, adjust their strategies, and optimise operations across borders, strengthening their competitive advantage.
- AI-Driven Process Improvement: Beyond ATG, AI plays a critical role in our overall digital strategy by driving process improvement across banking operations. By implementing AI-driven solutions, we’re optimizing decision-making, automating routine tasks, and enhancing customer experiences.
- Innovation Lab: It is a dedicated hub for exploring and implementing cutting-edge technologies tailored to address Africa’s unique challenges. Here, we incubate ideas, run accelerator programs, and launch initiatives that bring practical solutions to market.
- CANEX (Creatives Nexus) Platform: In line with our vision to diversify African trade,we’re also prioritizing the cultural and creative sectors through the CANEX platform. The platform provides a marketplace for creatives (music, film, fashion, culinary etc), offering investor matchmaking and growth opportunities.
- Next-Gen Technologies: We are continuously exploring advanced technologies to enhance our digital capabilities. For instance, we’re assessing blockchain’s potential for trade finance (documentary trade process) and exploring machine learning models to strengthen risk management and predictive analytics.
