Dean Adansi (2nd R) with stakeholder representatives at the conference
As numerous foreign banks either exit or plan to exit various African markets as part of their de-risking strategies, Ghana International Bank (GHIB), has chosen a rather different approach to risk management in its sub-Saharan operations.
GHIB’s de-risking strategy for Africa is to train and upscale the capacities of correspondent banks in Africa to ensure the high standards of compliance required in facilitating cross-border trade.
At the just ended CNVERGE conference in London, Chief Executive Officer of GHIB, Dean Adansi, touched on this important issue and how the bank is positioning itself to fill the critical gap.
During his address, Mr. Adansi said by leveraging its regional expertise and robust network, GHIB is set to be a key player in the continent’s evolving economic landscape.
“At a time when other financial institutions have de-risked and exiting the Sub-Saharan Africa region, GHIB has elected to build capacity in the region and finance trade on the continent,” Mr. Adansi said.
He added that, “During the recent financial crisis in Ghana, GHIB continued to finance trade even as other banks retreated and de-risked. Given the important role of treating advancing growth in our markets, it’s imperative that we find and implement solutions to promote trade activity.
I think the biggest question to keep in mind as we explore and discuss species related to trade of this conference is how best to play our part in growing trade in our markets.”
International Trade in Africa has long faced significant barriers due to the trade finance gap, a persistent and formidable obstacle that hampers business activities both within the continent and with external partners.
The situation has been further aggravated by a global trend of de-risking, which has led to the withdrawal of many global banking franchises from the African market.
In all of this, GHIB’s approach has been to keep faith with correspondent banks on the continent to enable them provide quality services to their clients.
Additionally, GHIB has successfully executed over $600 million in secondary market trade finance transactions and $1.3 billion in primary trade finance transactions within the region during the same period.
Ghana International Bank (GHIB), through its CNVERGE conference, is committed to being a pivotal player in shaping the future of African trade.
By Ebenezer K. Amponsah