In a move aimed at tackling one of Africa’s most persistent barriers to trade, United Bank for Africa (UBA) UK Limited and British International Investment plc (BII) have announced plans to collaborate on expanding access to trade finance across the continent.
The two institutions confirmed that they have signed a letter of intent to explore joint opportunities that would provide businesses, particularly small and medium-sized enterprises, with improved access to working capital, guarantees, and other trade finance instruments.
The initiative targets a long-standing financing shortfall that continues to limit Africa’s trade potential.
According to estimates by the African Development Bank, the continent faces an annual trade finance gap exceeding $80 billion, leaving many businesses unable to compete effectively in global and regional markets.
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Under the proposed framework, UBA UK will draw on its extensive network across 20 African countries to originate and structure transactions, while BII will support deals that may fall outside traditional commercial risk thresholds, particularly in underserved and frontier markets.
Chief Executive Officer of UBA UK, Lok Mishra, described the partnership as a strategic step forward.
“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.”
Also speaking, Managing Director and Head of Africa at BII, Chris Chijiutomi, emphasized the development impact of the collaboration.
“British International Investment is committed to catalysing private sector growth across Africa, and trade finance is a critical enabler of that growth. 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 proposed partnership aligns with broader efforts to deepen intra-African trade under the African Continental Free Trade Area, which came into force in 2021. Both institutions see the agreement as a potential catalyst for supporting businesses seeking to navigate the evolving continental market.
It also reflects growing engagement by the UK in Africa’s economic development, reinforcing the role of London as a global financial hub for mobilising capital into African markets.
