The United Bank for Africa (UK) Limited (UBA UK) and British International Investment Plc (BII), the UK’s development finance institution and impact investor, today signed a letter of intent to develop trade finance collaboration opportunities in Sub=Saharan Africa (SSA).
The proposed initiative aims to expand access to trade and working capital facilities for businesses operating across Africa as access to trade finance remains one of the most significant structural constraints on African trade.
For instance, businesses in the continent, particularly small and medium-sized enterprises, are in most cases unable to secure letters of credit, guarantees, and supply chain finance on commercially viable terms, limiting their capacity to export and import competitively.
According to data from the African Development Bank (AfDB), trade finance gap is estimated to be over $80 billion annually.
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To help close this gap, UBA UK, the London subsidiary of UBA Group, Africa’s Global Bank with headquarters in Nigeria, will leverage its deep relationships across the Group’s 20-country African network to originate and structure trade finance transactions.
Also, BII, with a mandate to support productive, sustainable, and inclusive growth across Africa, can support transactions that might otherwise fall outside conventional commercial appetite.
Commenting on the deal, Chief Executive Officer, UBA UK, Loknath Mishra, said: “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”, he added.
In his remarks on the partnership, Managing Director and Head of Africa at BBI, Chris Chijiuitomi, assured: “British International Investment 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.”
A news report from African Press Organisation (APO) Group circulated on behalf on the bank, indicated that the signing of the Letter of Intent would build on growing momentum around intra-African trade facilitated by the African Continental Free Trade Area (AfCFTA), which entered into force in 2021 and represented one of the world’s most significant trade integration initiatives.
The news medium clarified that both institutions had 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 UBA-BII trade finance initiatives will also complement the UK Government’s broader engagement with African economic development, including commitments made at the UK-Africa Investment Summit, and reinforces the City of London’s role as a leading international finance centre for Africa-focused capital mobilisation.
