UBA, BII Move To Boost Trade Finance Access Across Africa

United Bank for Africa UK Limited and British International Investment plc have signed a letter of intent to explore collaboration on trade finance, in a move aimed at easing access to funding for businesses across Africa.

The proposed partnership is expected to focus on expanding trade and working capital facilities, particularly for small and medium-sized enterprises that often struggle to secure essential instruments such as letters of credit and guarantees.

Limited access to trade finance remains a major barrier to growth on the continent. Estimates by the African Development Bank put the gap at more than $80 billion annually, leaving many businesses unable to compete effectively in global and regional markets.

Under the arrangement, UBA UK — the London subsidiary of United Bank for Africa Plc — will draw on its network spanning 20 African countries to originate and structure transactions. BII, on its part, is expected to support deals that may fall outside the risk appetite of traditional commercial lenders.

Chief Executive Officer of UBA UK, Lok Mishra, described the development as a significant step for the bank’s global ambitions, noting that the collaboration would help channel capital to underserved markets and support African businesses engaged in cross-border trade.

For BII, the partnership aligns with its broader mandate to drive inclusive economic growth. Its Managing Director and Head of Africa, Chris Chijiutomi, said trade finance remains critical to unlocking private sector potential, especially in frontier markets.

The initiative also ties into the broader opportunities presented by the African Continental Free Trade Area, which came into force in 2021. Both institutions see the continental trade pact as a key driver for increased demand in trade finance, as businesses expand across African borders.

Analysts say partnerships of this nature could play a vital role in deepening intra-African trade, while reinforcing London’s position as a hub for mobilising capital into the continent.

The agreement, however, remains subject to further due diligence and internal approvals by both parties.

UBA Group, one of Africa’s largest financial institutions, operates in 20 African countries and serves over 45 million customers globally, while BII maintains investments in more than 1,600 businesses across 66 countries, focusing on development impact and climate finance.