Policy brief: Trade credit and access to finance

Many African countries have achieved promising economic growth rates in recent years

From:
Department for International Development
Published
1 January 2017
Country:
Ethiopia
Document Type:
Briefing
Theme:
Economic Growth
Authors:
Tilburg University

Abstract

Many African countries have achieved promising economic growth rates in recent years. However, credit market imperfections are still persistent, resulting in limited access to formal bank credit for many firms, especially small and micro enterprises. Trade credit, as a method of direct ‘in-kind’ business financing, can be popular as an alternative to bank credit in locations with limited financial sector development. From this perspective, trade credit and bank credit can be considered substitutes.

Citation

Tilburg University (2017) Policy brief: Trade credit and access to finance

Policy brief: Trade credit and access to finance

Published 1 January 2017
Contents