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**TLDR:** African corporates are looking to expand their financing options as they face challenges in accessing capital. Standard Bank has partnered with DP World Trade Finance to offer trade finance solutions across Africa, while African corporates are also seeking to expand their relationships with banking partners. However, Africa’s debt capital markets remain underdeveloped and shallow, limiting the availability of financing options.
Corporate treasurers in Africa often face greater challenges in accessing capital compared to their counterparts in other regions. In an effort to address this issue, Standard Bank has partnered with DP World Trade Finance to offer trade finance solutions across Africa. The partnership allows the two firms to co-lend and share the risk on deals made via the platform. The aim is to provide African corporates with easier access to capital for their trade finance needs.
Another challenge faced by African corporates is the limited availability of banking partners. However, there is evidence of expansion beyond the region. According to Manish Kohli, Global Head of Global Payments Solutions at HSBC, the bank is seeing many clients from North Africa expanding beyond their home region. This indicates a desire among African corporates to diversify their roster of banking partners.
Despite these efforts, Africa’s debt capital markets remain underdeveloped and shallow. The African Development Bank Group’s Capital Markets Development Trust Fund reports that the total value of Africa’s debt capital markets is less than 3% of the continent’s GDP. This limits the availability of financing options for African corporates.
Local-currency corporate bond markets in Africa also face challenges in gaining traction and depth. The lack of listed securities and financial products in African capital markets further hampers the development of these markets. This highlights the need for further reforms and initiatives to deepen and develop Africa’s capital markets.
