United Bank for Africa (UK) and British International Investment (BII) have signed a letter of intent to explore a collaboration to expand trade finance access for businesses across Africa.
- • The initiative targets the financing gaps that limit participation of African firms, particularly small and medium-sized enterprises (SMEs), in regional and international trade.
- •Trade finance, including letters of credit, guarantees, and working capital facilities, remains constrained in many African markets.
- •The continent faces a multi-billion-dollar trade finance gap due to limited dollar liquidity, risk aversion by international banks, and structural challenges in frontier economies.
"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," Lok Mishra, CEO of UBA UK, said.
Under the agreement, UBA UK would originate transactions and connect African businesses with global financial markets, while BII would provide risk participation or co-investment in cases where conventional commercial appetite is limited.
The move aligns with broader efforts to close Africa’s trade finance gap. BII has previously engaged in risk-sharing and liquidity programs with other international banks to unlock credit for African importers and exporters. UBA Group has been expanding its trade finance operations to support cross-border commerce.
If implemented at scale, the initiative could improve access to financing, reduce transaction costs, and enable more African businesses to convert opportunities into executed deals.
