United Bank for Africa and British International Investment have signed a preliminary agreement to collaborate on trade finance across Africa, targeting improved access to funding for businesses, particularly small and medium-sized enterprises (SMEs).
The agreement, structured as a letter of intent, signals both institutions’ commitment to addressing one of the continent’s most persistent barriers to trade — limited access to affordable and reliable financing. Many African businesses continue to struggle with securing essential instruments such as letters of credit, guarantees, and supply chain finance, restricting their ability to compete effectively in international and intra-African markets.
The scale of the problem remains significant. According to estimates by the African Development Bank, Africa’s trade finance gap exceeds $80 billion annually, a shortfall that disproportionately affects SMEs. These businesses, which form the backbone of most African economies, are often unable to meet strict lending conditions imposed by traditional financial institutions.
Under the proposed collaboration, UBA’s UK subsidiary will leverage its network spanning over 20 African countries to originate and structure trade finance transactions. This network positions the bank to connect local businesses with international capital flows more efficiently. BII, on its part, is expected to provide support for transactions that may fall outside the risk appetite of conventional lenders, particularly in frontier and underserved markets.
Lok Mishra, Chief Executive Officer of UBA UK, described the agreement as a strategic step in expanding the bank’s global trade capabilities. “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,” he said.
Chris Chijiutomi, Managing Director and Head of Africa at BII, emphasised the development impact of the partnership. “Trade finance is a critical enabler of private sector growth across Africa. We welcome the opportunity to collaborate with UBA Group, whose pan-African network and deep institutional relationships can help expand access to trade and working capital finance, particularly in frontier markets,” he noted.
The initiative aligns closely with the objectives of the African Continental Free Trade Area, which aims to deepen economic integration and boost intra-African trade. By improving access to trade finance, both institutions seek to support businesses navigating new opportunities created by the agreement.
The collaboration also reflects broader efforts to strengthen Africa’s trade infrastructure and unlock private sector growth through targeted financial interventions. Further implementation remains subject to due diligence and internal approvals by both parties.
