In a strategic move to bolster economic growth across the continent, United Bank for Africa (UBA) UK Limited and British International Investment (BII), the UK’s development finance institution, have announced a collaborative effort to expand access to trade finance in Africa.
The two institutions have formalized their intent by signing a letter of intent to explore joint opportunities.
This partnership aims to provide African businesses, with a specific focus on small and medium-sized enterprises (SMEs), with much-needed access to working capital, guarantees, and various trade finance instruments.
The initiative directly addresses a critical hurdle in Africa’s economic landscape.
Data from the African Development Bank suggests the continent grapples with an annual trade finance gap exceeding $80 billion. This massive shortfall often prevents local businesses from competing effectively on both regional and global stages.
Under the proposed framework, UBA UK will leverage its expansive footprint across 20 African countries to originate and structure financial transactions. BII will complement this by supporting deals that might typically fall outside the risk appetite of traditional commercial lenders, particularly in underserved and frontier markets.
Lok Mishra, Chief Executive Officer of UBA UK, characterized the agreement as a landmark moment for the UBA Group’s global ambitions.
He noted that as the group’s primary hub for trade operations, UBA UK is uniquely positioned to bridge the gap between African enterprises and the international financial system. By working with BII, Mishra believes they can mobilize capital where it is most impactful, helping to unlock the continent’s untapped potential.
Echoing this sentiment, Chris Chijiutomi, Managing Director and Head of Africa at BII, emphasized that trade finance serves as a critical enabler for private sector growth.
He welcomed the collaboration, stating that UBA’s deep institutional relationships and pan-African network will be vital in advancing BII’s goal of expanding trade and working-capital finance in emerging markets.
This partnership aligns with the broader objectives of the African Continental Free Trade Area (AfCFTA), which seeks to deepen intra-African trade. It also reinforces London’s standing as a premier global financial hub for mobilizing investment into African markets, highlighting the UK’s growing engagement in the continent’s long-term economic development.