The report, which brings together perspectives & insights from 70 trade finance executives from 20 countries, unanimously calls for an urgent switch in the focus of support programs towards private sector and smaller enterprises to avoid a ‘second wave insolvency crisis’ that threatens greater, and far more widespread, economic hardship on the continent than we have seen till now
L’objectif de la visite était d’apprécier et de discuter de la coopération entre le Zimbabwe et la Banque et d’informer les autorités gouvernementales sur la stratégie « BADEA 2030 ».
Au cours de la visite, S.E le Directeur Général a rencontré S.E le Président de la République Emerson D. Manangagwa, le jeudi 14/11 2019, rencontre au cours de laquelle ont abordés les voies et moyens pour renforcer la coopération entre la République du Zimbabwe et la Banque. L’occasion a été offerte au Directeur Général de la Banque pour expliquer la stratégie « BADEA 2030» et l’adéquation de ses opérations avec les priorités de développement du Zimbabwe comme exposés dans la Vision Zimbabwe 2030, qui vise à augmenter le revenu moyen de chaque citoyen et avec l’engagement du Zimbabwe pour Plan de Développement Durable 2030 et aussi pour le calendrier de l’Agenda de l’Union Africaine 2063.
Demand for trade finance instruments in the first half of 2020 seems to have flattened compared to growth expectations, while banks, supplying those instruments, have typically “flown to safety” restricting their lending to existing clients. Overall, according to interviewees, the market has contracted from at least 10% on average from 2019 levels in volume and even greater in value because of furloughed projects and investments. Full recovery is only anticipated by end of 2021 at the earliest.
Banks interviewed mentioned that their main constraints revolved around risk uncertainties / macroprudential limitations to extend credit outside of their comfort zone, especially during a persisting pandemic.
BADEA is an independent international financial institution owned by eighteen (18) Arab countries, members of the League of Arab States (LAS), who signed its Establishing Agreement on 18 February 1974. BADEA enjoys full international legal status and autonomy in administrative and financial matters. It is governed by the provisions of its Establishing Agreement and the principles of International Law.
BADEA aims at strengthening economic (financial and technical) cooperation between Arab and African countries and the embodiment of Arab-African solidarity based on equality and friendship. Follow us on Social Media: @BADEAban
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