SMEs’ Demand for Trade Finance in Africa: the Case of Kenya and Tanzania

The trade finance gap in Africa has been widely researched over the years and remains unacceptably high, at USD 81.8 billion in 2019. The COVID-19 pandemic, which further disrupted trade in Africa, also affected the trade finance activities of banks across the continent, according to a survey on the impact of COVID-19 on African Trade Finance (Afreximbank et al., 2020). Small and medium-sized enterprises (SMEs), which are among the most significant contributors to African economies, were particularly affected by limitations in the supply of trade finance.