Technology key to unlocking Africa’s trade financing

In a recent interview with CNBC Africa, Mojisola Hunponu-Wusu, Founder and CEO of Woodhall Capital, shared insights on how technology is driving the transformation of Africa's trade financing landscape. According to Hunponu-Wusu, technology plays a crucial role in unlocking working capital for businesses across the continent, particularly for small and medium enterprises (SMEs) and large corporates. The discussion focused on the importance of knowledge-based solutions and collaboration among African stakeholders to address the challenges within the trade ecosystem. During the interview, Hunponu-Wusu emphasized the need for Africans to take the lead in developing solutions for trade finance. She highlighted the significance of convening industry experts to explore innovative approaches such as factoring, supply chain financing, and receivables financing. By leveraging technology, African businesses can enhance their operational efficiency, scale their operations, and accelerate growth. One of the key advancements highlighted in the discussion was the launch of Afrexin Trade Link by Frexin Bank, a technology-driven platform designed to streamline trade processes. By embracing digital tools and solutions, companies can navigate the complex trade landscape more effectively and stay ahead of the competition. The integration of technology not only improves operational capabilities but also fosters financial inclusion and economic development. Despite the progress in technology adoption, Africa still faces structural challenges in its trade ecosystem, including issues related to infrastructure, payments, and regulatory frameworks. To overcome these obstacles, stakeholders need to collaborate on developing actionable solutions and promoting knowledge sharing. By engaging industry thought leaders, organising workshops, and leveraging platforms like CNBC Africa, the dissemination of information and best practices can be accelerated, leading to quicker market adoption of innovative solutions. As Hunponu-Wusu highlighted, the key to advancing Africa's trade financing lies in proactive collaboration, solution-oriented discussions, and effective communication strategies. By harnessing the power of technology and collective expertise, African businesses can unlock new opportunities, drive economic growth, and foster a more inclusive and resilient trade ecosystem. In conclusion, the intersection of technology, knowledge-based solutions, and collaborative efforts is poised to revolutionize trade finance in Africa, positioning the continent for sustained prosperity and competitiveness in the global market.