Risk-averse strategies won’t weather the trade storm

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traders counting eggs at the Uganda-Kenya border

Admir advises SMEs that a risk-averse mindset won’t ensure business survival in volatile markets; rather, global and regional market expertise and experience are key to weathering the ongoing storm of changing tariff policies.

“In this volatile environment, SME agility is more critical than ever. The ability to pivot supply chains and invest in regional partnerships is key to business success. Yet if lenders continue to become more risk-averse in their investments alongside the widening global trade finance gap, higher rejection rates are inevitable for traditional financing.

“However, alternative financing and lending solutions can provide SMEs with the needed capital. This is extra important in case sudden shifts in markets necessitate more timely capital access, at favourable terms for SMEs. SME leaders have a responsibility to seek expert support and innovate their lines of investment to maintain a competitive edge on disrupted or limited resources.”

Regional expertise grants a competitive edge

Admir concludes: “SME leaders should consider real-time technology-backed expertise, which is needed to help with the shift towards developing local and regional markets rather than global ones.

“Developing local and regional capabilities and partners is the new frame of focus. Corporates and SME’s alike will need to address their operations and state of trading as the potential slowdown in global levels due to tariffs may slow. Investing in regional trade to bypass this, including local production capabilities, is the right step for businesses, especially in emerging markets.”

“Real-time regional expertise is needed to make reliable financial decisions tailored to specific SME needs in the modern business trade climate. This includes establishing smarter digital lending practices in high-risk, continuously shifting markets, and with AI-powered credit assessment capabilities alongside local and regional growth collaboration, businesses can build their own ecosystem that not just survives but thrives amidst ongoing global trade fragmentation.”

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