UBA, BII sign Letter of Intent for trade finance collaboration in Africa

The United Bank for Africa Limited and British International Investment Plc, the UK’s development finance institution and impact investor, have announced that they have signed a letter of intent to develop trade finance collaboration opportunities across Africa.

The proposed initiative aims to expand access to trade and working capital facilities for businesses operating across Africa.

Access to trade finance remains one of the most significant structural constraints on African trade. 

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. 

This trade finance gap is estimated by the African Development Bank to be over $80 billion annually. 

To help close this gap, UBA UK, the London subsidiary of UBA Group, Africa’s global bank, will leverage its deep relationships across the Group’s 20-country African network to originate and structure trade finance transactions. 

BII, with a mandate to support productive, sustainable, and inclusive growth across Africa, can support transactions that might otherwise fall outside conventional commercial appetite.

The Chief Executive Officer of UBA UK, Lok Mishra, said: “The signing of this letter with BII 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.”

The Managing Director and Head of Africa of BII, Chris Chijiuitomi, said: “British International Investment is committed to catalysing private sector growth across Africa, and trade finance is a critical enabler of that growth. 

Also Read

• Nigeria lost nearly 90% of forest cover in three decades — NCF
• Gas station explosion in Calabar injures residents, destroys property
• TEF supports 24,000 young African entrepreneurs, disburses $100m – CEO
• NIMC debunks fake free NIN data correction link, flyer
• International Down Syndrome Day: Foundation chides  societal prejudices

“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 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 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, a statement revealed.

Follow The Eagle Online Channel on WhatsApp

[wpadcenter_ad id='745970' align='none']