London — A new partnership between United Bank for Africa (UK) Limited and British International Investment plc aims to tackle one of Africa’s biggest barriers to economic growth: limited access to trade finance.
The two institutions announced the signing of a letter of intent to explore collaboration on trade finance solutions designed to support businesses across the continent. The initiative is expected to improve access to working capital, letters of credit, and other critical financial tools, particularly for small and medium-sized enterprises (SMEs).
Trade finance shortages continue to constrain African economies, with the African Development Bank estimating a gap of more than $80 billion annually. Many businesses struggle to secure affordable financing for imports and exports, limiting their competitiveness in global markets.
Under the proposed collaboration, UBA UK will draw on its parent company’s extensive presence in 20 African countries to originate and structure transactions. Meanwhile, BII will provide support for deals that may fall outside the risk appetite of traditional commercial lenders, helping to unlock capital for underserved markets.
Speaking on the development, Lok Mishra described the agreement as a significant step in advancing the bank’s global strategy. He noted that the partnership would strengthen UBA UK’s role in connecting African businesses to international financial systems and help bridge longstanding financing gaps.
Similarly, Chris Chijiutomi emphasized the importance of trade finance in driving private sector growth. He highlighted the opportunity to work with UBA’s broad network to expand financial access, particularly in frontier markets.
The initiative aligns with growing efforts to boost intra-African trade under the African Continental Free Trade Area, which came into force in 2021. Both institutions see the agreement as a catalyst for increased demand for trade finance solutions across the continent.
The partnership also reflects the United Kingdom’s broader push to support African economic development and reinforces London’s position as a key global hub for Africa-focused investment.
While the agreement signals strong intent, both parties noted that future cooperation will depend on further assessments, due diligence, and internal approvals.
UBA Group, one of Africa’s largest financial institutions, serves more than 45 million customers globally and employs over 25,000 people. BII, the UK’s development finance institution, has investments in more than 1,600 businesses across 66 countries, focusing on sustainable growth and poverty reduction.
