The Chief Executive Officer of Ghana International Bank (GHIB), Dean Adansi, has outlined a financing strategy aimed at moving Africa’s commodity trade away from raw exports towards value-added products, warning that the current export model is costing the continent billions in potential earnings.

Speaking to the BBC on the sidelines of the GHIB CONVERGE 2025 conference in London, Mr Adansi said Africa’s share of global trade remains under three percent, partly due to a persistent trade finance gap that prevents exporters from investing in local processing.

“Interest rates are significantly higher than in the West in many African countries, making it very difficult for smaller entities with short-track records to obtain the financing they need to export commodities, or even to industrialise locally,” he noted.

He pointed to structural challenges such as shallow capital markets, expensive working capital, and limited regulatory and infrastructure support. Highlighting the economic potential, Mr Adansi stated: “For every US$1 of trade, there is a US$1.70 impact on GDP, meaning that closing an US$80 billion trade finance gap in sub-Saharan Africa could generate an additional US$133 billion annually. The consequences are significant; in jobs, in revenues, and in building the local savings needed to strengthen domestic capital markets.”

GHIB, operating from London for 65 years, is partnering with local financial institutions in West Africa to strengthen their capacity and make them more attractive to larger international lenders. Over the past five years, the bank has facilitated more than US$14 billion in total trade flows, including US$10.6 billion in documentary trade collections and US$2.7 billion in primary trade finance transactions across Sub-Saharan Africa. Downstream payments to West Africa in 2024 alone exceeded US$8.5 billion.

Mr Adansi stressed that financing remains the main bottleneck to processing, noting that “traditional banking products are rarely designed to support multi-year investment cycles in processing.” He proposed specialised commodity finance instruments such as pre-export financing tied to off-take agreements, inventory financing against stored commodities, and equipment leasing to reduce capital outlays.

The conference heard of missed opportunities, including a contract worth over US$10 million for onions bound for Senegal that was supplied by European companies despite sufficient raw production in West Africa — a situation attributed to the lack of processing finance. Research presented suggested that raising Africa’s share of value-added exports from 14 to 25 percent could generate over US$50 billion in extra annual revenue and millions of industrial jobs.

While citing Ghana’s progress in cocoa processing and gold refining as examples of targeted finance delivering results, Mr Adansi cautioned that processing cannot advance without stable electricity, modern transport networks, skilled technical labour, and supportive tax regimes.

He identified the African Continental Free Trade Area (AfCFTA) as a platform for developing regional-scale processing hubs, adding that technology — including blockchain — could help African processors secure premium prices. “Sustainably processed commodities increasingly earn higher prices. With well-regulated carbon markets and environmental finance tools, Africa can attract the capital it needs while meeting global sustainability demands,” he said.

GHIB’s plan relies on partnerships involving commercial banks, development finance institutions, and governments, with pilot projects in targeted commodity sectors to demonstrate both financial and developmental benefits. “If we can build value chains that keep more of the processing on African soil, the gains will be felt not just in GDP, but in livelihoods,” Mr Adansi emphasised.