“If We Want to Industrialise, We Need Access to Trade Finance” 

Arnaud Levasseur and Jessen Coolen, of the Mauritius Commercial Bank (MCB), examined Africa’s shifting trade patterns, the opportunities for local banks and corporates, and the financial hurdles that continue to constrain industrialisation and growth across the continent. Drawing on hard data and field experience, they called for greater investment in education, energy value chains, and trade finance – with Mauritius positioned as a strategic enabler in this ecosystem.

Speaking at GTR East Africa 2025 in Nairobi, two senior executives from the Mauritius Commercial Bank (MCB) – Arnaud Levasseur, Executive Vice President for Global Trade Solutions, and Jessen Coolen, Economic Lead – offered a data-backed assessment of trade, finance, and development trends across the continent. Their message was both encouraging and cautionary: Africa has significant potential, but structural barriers must be addressed if the region is to harness its demographic, economic, and strategic advantages.

Arnaud Levasseur opened the session by highlighting the disparity between Africa’s population growth and its marginal presence in global trade. “One in four persons in the world will be African. That says a lot about the potential, the consumption, and the impact that it will have. Today, Africa accounts for 5% of world trade. So, we need to have a greater impact,” he said.

Referring to Africa’s leap in mobile payments, he encouraged a similar mindset for broader economic transformation. “We did not wait for ATMs to be everywhere. We are using mobile. So, we are really pushing it. The demand will drive the change,” he said.

Jessen Coolen drew attention to the demographic shift underway, noting that 75% of Africa’s population will soon be under the age of 35. However, he warned that education systems are not keeping pace. “If we don’t educate our young people, then it’s not going to be a dividend. It’s actually going to be an extended externality,” he said. “In Japan, around 60% of the youth are in higher education. In Africa, it’s only 10%. That already tells us a lot about the gap we need to bridge.”

“We did not wait for ATMs to be everywhere. We are using mobile. The demand will drive the change”

Jesse Coolen also addressed the continent’s strategic importance in the global energy transition. Africa is rich in minerals, such as cobalt, essential for clean energy technologies. “Africa accounts for 70% of the global reserve of cobalt, mainly in the DRC. The continent is also endowed with all the other critical minerals required to build a clean energy economy. But the idea is not to remain stuck on exporting raw materials. It’s really about shifting from lithium to batteries,” he stressed.

Arnaud Levasseur further explained how Mauritius can serve as a facilitator for African trade, particularly through the provision of financing instruments that mitigate risk for both importers and suppliers. “One of the major hurdles is that you need to make your payment before goods arrive. The lead time from Asia to Africa takes long, and the cycle is long. The average interest rate in African countries is from 10% to 15%. Can you imagine having a trade cycle of nine months and needing to fund it from day one?”

He added that Mauritius can support African buyers by offering access to credit through standby letters of credit, bank guarantees, and other financial tools. “If you want to industrialise, if you want to transition to a higher-value end, you need access to trade finance. Mauritius, with its small population, can help African buyers to connect,” Arnaud Levasseur said. “Helping with letters of credit, for instance, enables buyers to acquire future goods, which are future assets. This is where Mauritius can contribute.”

He also reflected on recent supply chain disruptions as a catalyst for self-reliance. “Yes, someone is disturbing us. But it’s a blessing. He’s making us think differently. He’s making us realise we don’t need to be impacted by others. We have a lot, and we need to start,” Arnaud Levasseur argued.

The MCB executives also stressed the need for local solutions to support inclusive growth. Education, energy transformation, and better access to financial instruments were identified as critical areas where regional collaboration can accelerate development.