DRAFT Improving the SMEs Access to Trade Finance
in the OIC Member States
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linking this consideration directly to economic value-creation as one means of ensuring
appropriate levels of political support.
The advantage of linking economic value to the availability of trade finance is to provide an
objective, compelling and economic basis upon which to base requests for investment,
deployment of resources and requests for political support, as relates to SME access to trade
finance. Just as practitioners have long known the low default and loss rates associated with
trade finance, but have only recently been driven to demonstrate this using industry data,
specialists are well aware of the economic engine that is trade and trade finance, but will
greatly benefit from being able to demonstrate this reality through objective data.
Initially, the cost related to this recommendation is likely to revolve around data-gathering and
analysis, either directly with OIC Member States, or, as noted, in collaboration with the Asian
Development Bank.
Given the potential scope of the initial analysis required, it is reasonable to expect that an
investment in the order of US $75,000 to $125,000 might be required, to cover a short
engagement aimed at conducting interviews and secondary research, and an assessment of the
ultimate findings.
Tactical and Operational Considerations
Recommendation 4: Map OIC Members to comparable jurisdictions to identify
applicable lessons and mutual challenges
As noted earlier, OIC Member States cover a wide spectrum of experiences, circumstances and
positions on a continuum of development, wealth and sophistication as relates to trade finance
and international engagement more broadly.
Given the breadth of individual circumstances and the differences in immediate priorities
among OIC Member States, COMCEC should undertake a process of mapping OIC Member
States to other international jurisdictions facing similar circumstances, with a view to
leveraging lessons learnt.
Additionally, it may prove valuable to develop a “twinning” program, creating mentorship links
between advanced OIC States and those in earlier stages of development as relates to trade
finance and as relates to the maturity of their respective SME segments and international
engagement. Such a program will combine practical commercial outcomes, with a concrete
step contributing to the high-level OIC/COMCEC objective of fostering greater collaboration
among Member States.
While such a program might also be designed purely with OIC Member States linking together,
it is suggested that a “twinning” type program be designed that specifically involves linkages to
other international jurisdictions.
This approach will have the advantage of broadening the sources of insight and shared
experience, while perhaps eventually serving as a conduit for the opening of new trade
markets, based on enhanced mutual understanding.