United Bank for Africa (UBA) and British International Investment (BII) have signed a Letter of Intent (LoI) to explore a major trade finance collaboration aimed at boosting businesses across Africa.
The agreement, announced through UBA’s UK subsidiary, signals a bold step toward addressing one of the continent’s biggest economic challenges—limited access to trade finance.
What the Collaboration Aims to Achieve
At its core, the proposed partnership seeks to expand access to:
- Trade finance facilities
- Working capital for businesses
- Letters of credit and guarantees
- Supply chain financing solutions
This initiative is expected to benefit companies across Africa, especially small and medium-sized enterprises (SMEs), which often struggle to secure funding needed for import and export activities.
Closing Africa’s $80 Billion Trade Finance Gap
Access to trade finance remains a major barrier to economic growth across the continent.
According to the African Development Bank, Africa faces a trade finance gap exceeding $80 billion annually. This gap limits the ability of businesses to compete globally and expand operations.
Through this collaboration:
- UBA will originate and structure deals using its extensive African network
- BII will support high-impact transactions that may fall outside traditional commercial risk appetite
Together, both institutions aim to bridge this massive funding shortfall.
Leveraging UBA’s Pan-African Network
United Bank for Africa operates in over 20 African countries, positioning it as a key connector between local businesses and global financial markets.
Its UK arm, UBA UK, will serve as the hub for:
- Structuring trade transactions
- Facilitating cross-border financing
- Linking African businesses to international capital
This network gives the partnership a strong foundation to scale impact quickly.
Driving Growth Through Strategic Investment
For British International Investment, the partnership aligns with its mission to support sustainable and inclusive economic growth across Africa.
By backing trade finance initiatives, BII aims to:
- Catalyse private sector growth
- Support underserved and frontier markets
- Unlock new economic opportunities
AfCFTA: A Key Catalyst Behind the Move
The collaboration comes at a time when intra-African trade is gaining momentum under the African Continental Free Trade Area (AfCFTA).
Also, Since its launch in 2021, AfCFTA has been creating new opportunities for businesses to trade across borders. However, access to financing remains a major bottleneck.
Besides, This partnership is expected to:
- Support businesses navigating the AfCFTA market
- Enable smoother cross-border transactions
- Strengthen regional economic integration
Strengthening UK–Africa Economic Ties
However, The initiative also reinforces the growing economic relationship between the UK and Africa.
Also, It aligns with broader efforts from the UK government and positions London as a key financial hub for Africa-focused investments and capital mobilisation.
Leadership Perspectives on the Deal
Lok Mishra, CEO of UBA UK, described the agreement as a “landmark moment” that will help connect African businesses to the global financial system and unlock critical capital.
Similarly, Chris Chijiutomi, Managing Director and Head of Africa at BII, emphasized that trade finance is a “critical enabler” of private sector growth and economic development across the continent.
What Happens Next?
While the Letter of Intent marks a significant step forward, the partnership is still in its early stages.
Future collaboration will depend on:
- Detailed assessments
- Due diligence processes
- Internal approvals from both institutions
The UBA–BII partnership could prove to be a game-changer for African trade.
Also, By tackling the long-standing trade finance gap, the initiative has the potential to empower businesses, boost exports, and accelerate economic growth across the continent.
If successfully implemented, this collaboration won’t just move money—it could reshape Africa’s trade future.
