DRAFT Improving the SMEs Access to Trade Finance
in the OIC Member States
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These countries registered the fastest export growth (with a yearly volume higher than
10,000 trade messages MT 700 received).
• Bangladesh: +118%
• Saudi Arabia: +11%
• Turkey: +9%
• Vietnam: +6%
• Indonesia: +6%
• Pakistan: +4%
• Singapore: +4%
Source: Rethinking Trade Finance 2013, ICC
Even a high-level and aggregated view of the state of trade and trade finance in OIC Member
States confirms that the issues faced by SME’s often involve commonalties that cross borders,
as well as the boundaries between conventional and Islamic Finance.
While the recognition of the importance of trade finance seems broadly-based today, this is not
the first time a counter-cyclical business like trade finance is acknowledged as an important
enabler of trade and value creation.
The objectives of the [Tanzania] Trade Finance Clinics were to: 1) increase knowledge
of African policy makers, exporters/importers and financial institutions on trade
finance products, services and tools, 2) create business links between foreign and
African business communities, and 3) increase trade and investment in Africa. The
Clinics had four back-to-back events including; a one-day workshop on Trade Finance
in Africa, one-day Women in Trade Forum, six buyer seller meetings and a 12-day walk-
in information and knowledge center.
Source: Scaling Up Capacity Development in Trade Finance, World Bank, 2005
That said, some observers and industry specialists observe that the evolution of Islamic Trade
Finance has not reached a tipping point in terms of its potential and in terms of maximizing its
contribution to the development of intra-OIC trade flows.
Similarly, while the critical importance of the contribution of export credit agencies to robust
trade, particularly for SMEs and in emerging markets, has been widely recognized, the
presence of export credit entities at the national level within OIC Member States is far from
universal.
While there are several multilateral agencies which can directly, or indirectly support the
trade aspirations of OIC Member States, and it may be possible in some cases to access private
sector solutions on a case-by-case basis, the absence of national ECAs suggests a compelling
opportunity to advance trade, economic growth and development through the establishment
of ECA-type entities where the need is deemed most urgent, and where the economic benefit
can be the most immediate.
Whether such initiatives can be supported by supra-national entities is a question worth
considering, and one that might be defined as part of the scope of a cross-OIC best practices