The African Export-Import Bank (Afreximbank) is providing training to bankers to help enhance their technical skills in letters of credit (L/Cs) and other aspects of trade finance.

Afreximbank recently provided documentary trade finance training in Zimbabwe to 44 participants from 15 commercial banks, one non-bank financial institution and the Reserve Bank of Zimbabwe (RBZ - central bank).

L/C focus

The training course focused on the central bank issuing L/Cs for essential imports including fuel and grain.

The banks agreed to work towards designing a model L/C format to cover key commodity imports.

Once an agreed L/C model is developed it will be used by all the banks, with endorsement expected from RBZ.

Trade finance development

The training programme was delivered under Afreximbank's Trade Finance Leadership pillar under which it seeks to play a leading role by providing support and training for some of the critical trade finance products it already offers and by creating new products and initiatives.

It will expand its trade services with the aim of filling the gap created by reduced activities by international banks in Africa due to high compliance costs and economic uncertainties.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.