Public export credits for transactions in Africa: a qualitative comparative analysis

Purpose
This research aims to broaden the debate, contribute to the existing literature on public export financing and provide actionable recommendations for decision-makers by analysing strategic directions and key operational factors that led to high performance of non-African government export credit agencies (ECAs) and export-import banks (EXIMs) for transactions in Africa.

Design/methodology/approach
Based on insights from a fuzzy-set Qualitative Comparative Analysis, we conduct a qualitative study assessing public export promotion programmes that aim to promote trade and fill market gaps for entrepreneurs through financing, insurance and guarantees. We focus on non-African countries with high export volumes to Africa.

Findings
Our results show that an export-related Africa strategy of a government implemented by the respective ECA or EXIM, combined with a competitive loan offering and a strong presence in Africa, or high insurance cover ratios, can account for high performance. This is defined as specific and strong Africa-related support for projects, enabling exporters to successfully close transactions on the continent and leading to an international-level playing field for internationally oriented entrepreneurs, particularly small and medium-sized exporters.

Originality/value
This is the first research that analyses public export credits from non-African institutions for corporate transactions in Africa through the identification of four conditions to examine high performance of public finance instruments.