Access to trade finance remains one of the most significant structural constraints on African trade. Businesses, particularly small and medium-sized enterprises (SMEs), are frequently unable to secure letters of credit, guarantees, and supply chain finance on commercially viable terms, limiting their capacity to export and import competitively.
This trade finance gap is estimated by the African Development Bank (AfDB) to be over $80 billion annually.
Worried by the impact this has had on African businesses, the United Bank for Africa (UK) Limited has partnered with the British International Investment (BII) Plc to address this issue.
Both organisations have signed a letter of intent to develop trade finance collaboration opportunities. The proposed initiative aims to expand access to trade and working capital facilities for businesses operating across Africa.
The lender will leverage its deep relationships across the UBA Group’s 20-country African network to originate and structure trade finance transactions. While BII, with a mandate to support productive, sustainable, and inclusive growth across Africa, can support transactions that might otherwise fall outside conventional commercial appetite.
This partnership builds on growing momentum around intra-African trade facilitated by the African Continental Free Trade Area (AfCFTA), which entered into force in 2021 and represents one of the world’s most significant trade integration initiatives.
Both institutions have identified the operationalisation of AfCFTA as a priority catalyst for a trade finance facility, with UBA UK’s network across major AfCFTA economies offering a basis for supporting businesses navigating the emerging continental market.
“The signing of this letter with BII represents a landmark moment for UBA UK and for the UBA Group’s global ambitions. As the Group’s hub for Trade Operations, UBA UK is uniquely positioned to connect African businesses with the international financial system.
“Working alongside BII, we can extend that capability further — mobilising capital where it matters most and helping to close the trade finance gap that holds back so much African potential,” the chief executive of UBA UK, Mr Lok Mishra, said.
Also commenting, the Managing Director and Head of Africa for BII, Mr Chris Chijiuitomi, said his organisation “is committed to catalysing private sector growth across Africa, and trade finance is a critical enabler of that growth.”
“We welcome the opportunity to collaborate with UBA Group, whose pan-African network and deep institutional relationships can help advance our ambition to expand access to trade and working capital finance, particularly in frontier markets,” he added.