Could ECAs help Africa mitigate Covid-19 pushed recession?

(Global Trade Review, London, 15 April 2020) The outbreak of Covid-19 has left Africa facing the prospect of its first recession in 25 years, with countries dependent on oil exports or struggling with political instability on the frontline. Significant efforts to keep African trade moving have already been undertaken by export credit agencies (ECAs) active on the continent, as well as by global organisations such as the International Monetary Fund and the World Bank. But for Angelica Adamski, director of the board at the Sweden-Africa Chamber of Commerce, there are other steps that ECAs in particular could consider taking to bring some relief to African exporters. For instance, she suggested more ECAs should consider extending coverage to short-term credit and trade receivables. "Some ECAs are already covering working capital programmes, but we need to put more emphasis on this” she noted.

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