VIDEO | Bridging trade finance gaps and unlocking African business potential - Trade Treasury Payments

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At the ITFA Americas Annual Conference in Miami, Trade Treasury Payments (TTP) spoke with Michael Kofi Fosu, CEO of International Trade Finance and Payment Consultancy (ITFP), to discuss the structural challenges African businesses face in international trade and how bridging those gaps begins with understanding the local context.

Fosu said, “There are a lot of viable businesses in Africa, but if you don’t understand how the system works, it’s difficult to participate. Many standards and policies developed outside the continent don’t translate well on the ground.”

Fosu set up ITFP to support African importers and exporters and connect grassroots businesses to international markets. That includes matchmaking with foreign investors, providing funding guidance, and helping firms understand cross-border trade. But for many, access to finance remains the core bottleneck.

Fosu said, “The biggest issue is financing. In Africa, corresponding banking relationships are extremely limited. When it comes to letters of credit, clients are often asked to deposit the full amount in cash. That defeats the purpose.”

As a result, many businesses are turning away from traditional trade finance instruments and instead opting for direct advance payments, transferring funds to suppliers up front, with little to no risk mitigation.

At the heart of the problem is trust. And technology.

Fosu said, “Technology is another major challenge. Many businesses in Africa aren’t yet digitally integrated, so they can’t easily connect with international systems. That creates friction and makes it harder to scale.”

Despite these challenges, Fosu sees momentum building. At the conference in Miami, he highlighted the potential for stronger business ties between African firms and international players, pointing to Miami’s role as a gateway city much like Dubai or Singapore.

Fosu said, “Miami opens up new opportunities. The plan now is to find businesses in Miami interested in collaborating with Africa, so we can build something mutually beneficial.”

His message to clients and the broader industry is that Africa holds promise, but preparation will be necessary to access it.

“There is opportunity,” Fosu said. “We need to package ourselves well, be attractive, and the world will become one.”