Caption: From left, West Africa Director and of Office Africa Coverage, BII West Africa, Benson Adenuga; Managing Director and Head of Africa, BII, Chris Chijiutomi; Lok Mishra, Chief Executive Officer, UBA UK, Loknath Mishra; and Oliver Alawuba, Group Managing Director, United Bank for Africa (Plc) during the signing of letter of intent to develop trade finance collaboration opportunities.
Poised to resolve the challenge of access to trade finance and working capital for Africa businesses, which is estimated by the African Development Bank at over US$80 billion annually, have remained significant structural constraints in Africa, United Bank for Africa (UK) Limited and British International Investment Plc, the UK’s development finance institution, on Friday agreed to jointly develop trade finance opportunities.
According to reports, businesses – particularly small and medium-sized enterprises – 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.
To help close this gap, UBA UK, the London subsidiary of UBA Group, will leverage its deep relationships across the Group’s 20-country African network to originate and structure trade finance transactions.
On its part, BII, leaning on its 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, Lok Mishra, Chief Executive Officer, UBA UK said it “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.”
On his part, Chris Chijiutomi, Managing Director and Head of Africa for BII, said it “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.”
The announcement, the joint statement noted, 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.
This, it continued, also complements 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.
Future cooperation remains subject to further assessment, due diligence and the completion of internal approvals by both parties.
