Commodity-Based Financing in Africa

The webinar explores how commodity-backed and structured trade finance solutions can improve access to capital for businesses operating across Africa's agricultural, mining, energy, and industrial sectors. We examine how financial institutions and market participants can leverage commodities, receivables, inventory, and future cash flows to support trade, enhance liquidity, and mitigate financing risks.

The session also provides practical insights into the evolving landscape of commodity finance, highlighting how innovative financing structures can bridge funding gaps, support cross-border trade, and strengthen commodity value chains across the continent.

Participants will gain a better understanding of the opportunities and challenges associated with commodity-based financing in African markets. Key financing structures to be discussed include:

• Pre-Export Finance (PXF): Financing provided against future export proceeds generated from commodity sales contracts.
• Borrowing Base Facilities: Revolving credit facilities secured against eligible inventories, receivables, or commodity assets.
• Inventory and Warehouse Financing: Funding secured against commodities stored in approved warehouses under warehouse receipt systems.
• Trade and Supply Chain Finance: Solutions that support importers, exporters, suppliers, and distributors throughout the commodity value chain.
• Structured Commodity Finance (SCF): Tailored financing structures using contractual cash flows, collateral arrangements, and risk mitigation mechanisms.
• Reserve-Based Lending (RBL): Financing against proven oil, gas, or mineral reserves and future production revenues.

The webinar also address key risk mitigation tools commonly used in commodity financing transactions, including collateral management agreements, escrow and collection accounts, hedging arrangements, and security packages.