British International Investment (BII), the UK’s development finance institution, has partnered with Absa Group to announce a $150 million trade facility aimed at bridging Africa’s substantial trade finance gap, which is estimated to be between $100 billion and $120 billion.
Strengthening Existing Partnerships
This initiative builds on the longstanding collaboration between BII and Absa, which has already facilitated significant trade liquidity in several African countries, including Ghana, Nigeria, Kenya, Uganda, Tanzania, and Mozambique. Since 2019, their partnership has supported over $1 billion in trade volumes, demonstrating a strong commitment to enhancing trade across the continent.
Targeting Key Sectors
The new facility will focus on critical sectors such as agriculture, fast-moving consumer goods (FMCG), and healthcare. It aims to provide sustainable and inclusive funding, with a particular emphasis on supporting small and medium-sized enterprises (SMEs) as well as businesses led by women and young entrepreneurs.
Promoting Gender Equality and Social Progress
This initiative aligns with the 2X Challenge, an impact investment standard that promotes gender equality, inclusive leadership, and social progress. The agreement was formalized during the World Bank Annual Meetings, attended by key figures including Nick O’Donohoe, BII CEO, and UK Development Minister Anneliese Dodds.
Commitment to Economic Growth
Anneliese Dodds highlighted the significance of the partnership, stating, “This facility demonstrates BII and Absa’s shared commitment to addressing Africa’s estimated $100 billion trade financing gap, fostering sustainable and inclusive economic growth.”
Admir Imami, Director of Trade & Supply Chain Finance at BII, reaffirmed this sentiment, saying, “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.”
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.