Trade Credit Insurance in Africa: New Tinubu x ICISA Whitepaper

Tinubu has partnered with ICISA (International Credit Insurance & Surety Association) to publish a new whitepaper: Kickstarting Trade Credit Insurance in Africa: Easier Than You Think.

An untapped opportunity

Africa's economies are growing fast, driven by initiatives like the African Continental Free Trade Area (AfCFTA). Yet one critical ingredient remains scarce: risk protection for trade receivables. Over 90% of intra-African trade is conducted on open account, and less than 5% is covered by credit insurance. In West Africa alone, the trade finance gap is estimated at $14 billion, with bank rejection rates for trade finance applications reaching 21% of requests. For many SMEs, late or unpaid invoices remain a leading cause of business failure.

Globally, trade credit insurance underpins roughly 15% of all issued invoices. In Africa, the opportunity to close that gap is massive.

Simpler than you think

The whitepaper debunks common misconceptions that have held back TCI adoption on the continent. It demonstrates that a TCI operation can be built around just three core pillars:

• Commercial Underwriting: issue and manage policies, often in partnership with local banks or brokers
• Risk Management: assess buyer creditworthiness, monitor exposures, and leverage reinsurance to share risk
• Claims & Recovery: handle defaults quickly and fairly, building market trust with every resolved claim

Each capability can be developed gradually, with outside support. Together, they form a virtuous cycle where commercial outreach fuels underwriting, which in turn builds claims confidence.

Real barriers, real solutions

The whitepaper also addresses the practical challenges new entrants face, from legal enforceability of debt and credit data gaps to the absence of established distribution networks, and outlines how each can be overcome through partnerships with banks, DFIs, regulators, and technology providers.

Why it matters

Studies show that insured trade credit has a multiplier effect on trade volumes, often exceeding the insured amounts themselves. One Tinubu client saw trade volumes grow to 2 to 3 times the value of insured exposure within the first year. Beyond boosting trade, TCI strengthens SME finance, encourages business formalisation, and helps retain insurance premiums locally rather than sending them offshore.

→ Download the whitepaper