UBA, BII Consider Partnership to Boost Trade Finance for African Businesses
UBA, BII Consider Partnership to Boost Trade Finance for African Businesses
United Bank for Africa and its UK subsidiary UBA UK are in talks with British International Investment over a possible collaboration aimed at strengthening trade finance support across Africa.
The parties confirmed that a letter of intent has been signed, but discussions are still ongoing and the arrangement has not yet been finalized. The proposed cooperation is expected to focus on improving access to funding for businesses engaged in cross-border trade within the continent.
Under the plan being explored, UBA UK could leverage the banking group’s presence in more than 20 African countries to identify trade opportunities and structure financing deals suited to local markets. BII, which focuses on development financing, may provide backing for transactions considered high-risk by conventional lenders.
According to officials involved in the discussions, the goal of the initiative is to help address Africa’s persistent shortage of trade finance, a challenge that continues to limit the growth of many small and medium-sized enterprises.
Estimates from the African Development Bank suggest the continent faces a trade finance gap of more than $80 billion each year, with supply-chain financing among the most affected areas. Reports by the United Nations Conference on Trade and Development indicate that only a fraction of demand for supply-chain finance is currently being met, despite the segment having strong growth potential.
Industry observers note that improving access to finance is considered essential for the success of the African Continental Free Trade Area, a regional trade framework designed to create a single African market and expand intra-African commerce.
If concluded, the UBA–BII collaboration is expected to support businesses seeking working capital and trade funding, particularly in frontier and emerging markets across the contine
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