By BUUMBA CHIMBULUCAPITAL outflows from Africa exceeded US$5 billion during the first quarter of 2020 owing to tightening global financial conditions.This is contained in a report, which surveyed 185 banks in Africa, representing more than 58 percent of total assets held by African banks.The African Export-Import Bank (Afreximbank), in collaboration with the United Nations Economic Commission for Africa (ECA), the African Development Bank (AfDB) and Making Finance Work for Africa Partnership (MFW4A) prepared the report and realised it this month.It provides a better understanding of the trade finance landscape across Africa and how it has evolved during the Covid-19 pandemic.According to the report, the supply of trade finance was affected between January and April 2020, the period covered by the survey.Tis was as a result of the pandemic and inherent tightening financing conditions, heightening balance of payment pressures and liquidity constraints,Afreximbank president, Benedict Oramah, highlighted how the tightening global financial conditions triggered massive capital outflows […]
