UBA, BII move to bridge $80bn Trade Finance gap in Africa

United Bank for Africa (UK) Limited (UBA UK) and British International Investment have signed a letter of intent to explore a strategic trade finance collaboration aimed at unlocking capital for businesses across Africa.

The agreement, announced in London on March 16, is designed to expand access to trade and working capital facilities, particularly for small and medium-sized enterprises (SMEs) that continue to face significant barriers in securing financing for cross-border trade.

Access to trade finance remains one of the most persistent structural challenges on the continent, with businesses struggling to obtain letters of credit, guarantees and supply chain financing on viable terms. The African Development Bank estimates Africa’s trade finance gap at over $80 billion annually, a shortfall that continues to constrain export and import competitiveness.

Under the proposed collaboration, UBA UK, London subsidiary of United Bank for Africa, will leverage its extensive footprint across 20 African countries to originate and structure trade finance transactions. BII, on its part, will provide support for deals that may fall outside traditional commercial risk appetite, in line with its mandate to drive inclusive and sustainable economic growth.

Chief Executive Officer of UBA UK, Lok Mishra, described the initiative as a significant step in advancing the Group’s global ambitions, noting that the bank is strategically positioned to connect African enterprises to international financial systems and mobilise capital where it is most needed.

Similarly, Managing Director and Head of Africa at BII, Chris Chijiutomi, said the partnership aligns with the institution’s objective of catalysing private sector growth, particularly in frontier markets where access to trade finance remains limited.

The initiative comes amid renewed focus on intra-African trade under the African Continental Free Trade Area, which took effect in 2021 and is regarded as one of the world’s largest trade integration frameworks. Both institutions identified AfCFTA as a key driver for scaling trade finance solutions, leveraging UBA’s network across major African economies.

The collaboration also aligns with the United Kingdom’s broader economic engagement with Africa and reinforces London’s position as a global hub for mobilising capital into African markets.

However, both parties noted that the proposed cooperation remains subject to further due diligence, internal approvals and detailed structuring before full implementation.

UBA Group, one of Africa’s largest financial institutions, operates in 20 African countries as well as the UK, US, France and the UAE, serving over 45 million customers and employing about 25,000 people globally.

BII, the UK’s development finance institution, has investments in more than 1,600 businesses across 66 countries, with total net assets of £9.87 billion, and is committed to allocating at least 30 per cent of its new investments between 2022 and 2026 to climate finance initiatives.