Designing the future is a complex exercise, especially in the context in continuing evolution; but it is not impossible and even with probability to succeed. By and large, nothing happens by chance, but everything is linked to a logic of occurrence.
A– We would like to draw conclusions by taking the results of an international survey carried out by the African Development Bank on the main shortcomings of the financial market:
A1 – The estimated global trade finance gap has been large and stable at $1.5 trillion.
A2 -The achievement of the Sustainable Development Goals is at risk if the international trade finance gap continues.
A3 – More than 70 percent of the banks surveyed have highlighted a shortage of services to meet the trade finance needs of the global market.
These shortcomings are more widespread in Africa and as far as financial relations are concerned it can be said that the main obstacle is the lack of confidence that leaves off incalculable opportunities for both sides.
The banks should do more mainly on the assessment of the client’s financing requests. We do say that the loans’ repayment could be guaranteed with a very good assessment of the financing demand, good monitoring & follow-up along a well-defined recovery procedure. On the other side, the customers should present reliable and sustainable demand for loans.
Currently, the financial markets’ situation could hamper sustainable and equal development. This is due to the functioning of the markets, which could be explained with asymmetric information or when one party has more information than the counterpart. In other words, it is a problem of confidence that is evident in the position of the creditor and debtor: in the event of non-repayment, the loss of the former won’t only be the percentage of the interest not cashed, but the full capital invested, while the latter will risk his reputation and thus driven out of the market.
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Ascanio Graziosi 