British International Investment (BII), the UK’s development finance institution, has announced a $150 million trade facility in collaboration with Absa Group. This facility is designed to address Africa’s significant trade finance gap, which is estimated to be between $100 and $120 billion.
This new agreement builds on a longstanding partnership between BII and Absa, which has already provided substantial trade liquidity to several African countries, including Ghana, Nigeria, Kenya, Uganda, Tanzania, and Mozambique. Since 2019, this partnership has supported over $1 billion in trade volumes.
The new facility will target critical sectors across the continent, such as agriculture, fast-moving consumer goods (FMCG), and healthcare. It aims to provide sustainable and inclusive funding, particularly focusing on small and medium-sized enterprises (SMEs) and businesses led by women and young entrepreneurs.
This initiative also qualifies for the 2X Challenge, an impact investment standard that promotes gender equality, inclusive leadership, and social progress. The agreement was formalized at the World Bank Annual Meetings, with the presence of Nick O’Donohoe, BII CEO, Anneliese Dodds, and Charles Russon.
UK Development Minister Anneliese Dodds emphasized the importance of the partnership, stating;
This facility demonstrates BII and Absa’s shared commitment to address Africa’s estimated $100 billion trade financing gap, fostering sustainable and inclusive economic growth.
Admir Imami, Director of Trade & Supply Chain Finance at BII, echoed this sentiment, noting;
Our partnership with Absa is rooted in a mutual goal of advancing inclusive economic development, particularly for SMEs and women-led businesses. By combining BII’s support with Absa’s cross-border expertise, we aim to improve access to trade finance and the flow of essential goods across Africa.
Charles Russon, Absa Group’s Interim Group Chief Executive Officer, added;
Our reach across Africa and beyond positions us to facilitate the capital and trade finance needed by African businesses to scale. Through strategic partnerships, we are fostering sustainable growth and new opportunities in emerging markets, strengthening Africa’s economic ecosystem.
