ODA and Aid for Trade in LDCs in the context of COVID-19 – new Trade Funding Insights brief from the EIF

15 February 2021. “There is a growing consensus that Official Development Assistance (ODA) alone won’t be enough to help least developed countries (LDCs) recover from COVID-19. The pandemic is straining ODA and raising the transaction costs of international trade for LDCs due to supply chain disruptions and troubles in accessing trade finance. Small and medium sized enterprises in LDCs that have had to rely on small amounts of funding from their savings, credit or loans from friends and family for their day-to-day operations are among the hardest hit by these global challenges. The Enhanced Integrated Framework’s Trade Funding Insights series is highlighting innovative financing opportunities for trade in LDCs, in order to help LDCs to take advantage of these opportunities. In this Insight, we look at the potential impact of COVID-19 on Official Development Assistance and Aid for Trade in LDCs, and explore how these funding mechanisms can be used to encourage more innovative private financing for trade.” Full text here: Trade Funding Insights: Official Development Assistance (ODA) and Aid for Trade.