United Bank for Africa (UBA) Group and British International Investment (BII) have signed a letter of intent to explore a strategic partnership aimed at expanding trade finance opportunities across Africa.
The agreement, announced by UBA’s UK subsidiary, United Bank for Africa UK Limited, is designed to improve access to working capital and trade finance solutions for businesses operating across the continent, particularly small and medium-sized enterprises (SMEs).
Limited access to trade finance remains a major obstacle to African trade, with many businesses struggling to secure essential instruments such as letters of credit, guarantees, and supply chain financing on competitive terms. According to estimates by the African Development Bank, the continent faces an annual trade finance gap exceeding $80 billion.
Under the proposed collaboration, UBA UK will leverage its extensive presence across 20 African countries to originate and structure trade finance deals, while BII will provide support for transactions that may fall outside the risk appetite of traditional commercial lenders.
Chief Executive Officer of UBA UK, Loknath Mishra, described the agreement as a significant step in strengthening the bank’s global ambitions. He noted that the partnership would help connect African businesses to international financial markets and mobilise much-needed capital to drive growth.
On his part, Chris Chijiutomi, Managing Director and Head of Africa at BII, said the initiative aligns with the institution’s commitment to fostering private sector development. He emphasised that improving access to trade and working capital finance is critical, especially in frontier markets.
The collaboration is also expected to support the growth of intra-African trade under the African Continental Free Trade Area (AfCFTA), which aims to create a unified market across the continent. Both institutions see the trade pact as a key driver for expanding financing solutions to businesses navigating the evolving African market.
The initiative further complements broader UK engagement in Africa’s economic development and reinforces the role of the City of London as a major hub for financing Africa-focused investments.
However, both parties noted that the partnership remains subject to further due diligence and internal approvals before full implementation.
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