Professor Joshua Y. Abor Delivers a presentation on Development Banks and Trade Development in Africa at the German Institute of Development and Sustainability, Germany
Prof. Joshua Yindenaba Abor, Professor of Finance and former Dean of the University of Ghana Business School (UGBS) has delivered a presentation on Development Banks and Trade Development in Africa at the German Institute of Development and Sustainability (IDOS) in Bonn, Germany, on 16th December 2025. The presentation examined the critical role of development banks in strengthening Africa’s trade performance and addressing long-standing structural challenges that limit the continent’s integration into global trade.
During the seminar, Prof. Abor noted that while trade remains a fundamental driver of economic growth, industrialisation and market expansion, many African countries continue to face constraints such as overdependence on raw commodity exports, low levels of intra-African trade, weak transport infrastructure and limited access to affordable trade finance.
He also explained that these specialised financial institutions were established to provide long-term capital for projects that promote socio-economic development. He highlighted the renewed importance of national, regional and multilateral development banks in recent years, particularly in financing development in emerging and developing economies.
Prof. Abor outlined several ways in which development banks contribute to trade development in Africa, including financing trade-enabling infrastructure, facilitating regional integration, expanding access to trade finance for businesses, promoting digital trade and supporting trade-related policy reforms. He cited examples of investments in transport corridors, digital payment systems and trade facilitation initiatives that have improved logistics efficiency and reduced transaction costs across the continent.
The session also discussed trade financing instruments used by development banks, such as lines of credit, trade credit guarantees, export credit insurance and structured trade finance. Particular attention was given to the interventions of institutions including Afreximbank, the African Development Bank and the Ghana Export-Import Bank, with examples of financing provided to support small and medium-sized enterprises, industrialisation, export diversification and the implementation of the African Continental Free Trade Area (AfCFTA).
In concluding, Prof. Abor emphasised that development banks have been instrumental in enhancing regional integration, improving trade efficiency and promoting economic diversification in Africa. He called for stronger public-private partnerships, increased financial innovation, improved governance frameworks and greater investment in climate-resilient and green trade finance to support sustainable trade growth. He further noted that continued collaboration among development banks, governments and the private sector would be essential to building a resilient and inclusive African trade ecosystem under the AfCFTA framework.