AfCFTA Secretariat, BoG Launch Neofingo to Transform Trade Finance for SMEs

The AfCFTA Secretariat and the Bank of Ghana have partnered with international stakeholders to launch Neofingo, a digital trade finance corridor designed to improve access to cross-border financing for small and medium-sized enterprises (SMEs) across Africa.

The initiative, unveiled in collaboration with the UK’s Foreign, Commonwealth & Development Office and ODI Global, introduces a technology-driven framework aimed at simplifying trade processes, reducing costs, and accelerating transactions under the African Continental Free Trade Area.

At the core of Neofingo is a digitally enabled system that replaces traditional paper-based trade finance mechanisms with streamlined digital tools. The platform incorporates artificial intelligence and validated digital letters of credit to facilitate faster verification, improve transparency, and minimise the risks associated with manual documentation.

Stakeholders say the system represents a significant shift from conventional trade finance models, which have long been criticised for inefficiencies such as processing delays, high transaction costs, and limited accessibility—particularly for SMEs. These barriers have historically restricted the participation of smaller businesses in both regional and global trade.

The Neofingo corridor is structured around a “jointly governed protocol” linking UK-based digital finance institutions with African fintech ecosystems. This approach is expected to enhance interoperability between financial systems, enabling seamless communication, compliance checks, and transaction processing across borders.

Beyond digitisation, the initiative is also aligned with evolving legal and regulatory frameworks in both Africa and the UK. It supports broader efforts to modernise trade infrastructure under the AfCFTA while complementing Ghana’s growing fintech ecosystem and regulatory advancements in digital finance.

According to project partners, Africa faces a significant trade finance gap, with an estimated US$120 billion in viable trade transactions going unfunded annually. Neofingo is positioned as a practical intervention to address this shortfall by expanding access to formal financing tools, particularly for SMEs that struggle to meet the stringent requirements of traditional banking systems.

The platform also builds on Ghana’s recent progress in digital trade innovation. In 2024, the central bank successfully piloted the use of digital credentials for cross-border payments and trade transactions, demonstrating the feasibility of technology-driven solutions in enhancing financial infrastructure.

By reducing friction in trade processes, improving trust through digital verification, and enabling faster access to credit, Neofingo is expected to make the AfCFTA more commercially relevant for businesses. It aims to unlock new opportunities for exporters, strengthen intra-African trade, and support economic integration across the continent.

While still in its early stages, the soft launch of Neofingo signals a broader shift toward digital transformation in trade finance. If successfully scaled, the initiative could play a pivotal role in narrowing Africa’s trade finance gap and fostering a more inclusive, efficient, and resilient cross-border trading system.