By Peter John
United Bank for Africa (UBA) Group and British International Investment plc (BII), the UK’s development finance institution, have taken a significant step toward expanding trade finance in Africa by signing a letter of intent to explore collaborative opportunities.
The partnership aims to enhance access to trade and working capital facilities for businesses across the continent, addressing one of the biggest barriers to African trade.
Access to trade finance remains a persistent challenge for many African businesses, particularly small and medium-sized enterprises, which often struggle to obtain letters of credit, guarantees, and supply chain finance on commercially viable terms.
According to the African Development Bank, the continent faces an annual trade finance gap exceeding USD 80 billion, limiting the capacity of businesses to compete in global markets.
UBA UK, the London-based subsidiary of the UBA Group, will leverage its extensive network spanning 20 African countries to structure and originate trade finance transactions.
BII, with its mandate to support productive, sustainable, and inclusive growth across Africa, will help bridge the financing gap by supporting transactions that may fall outside conventional commercial appetite.
Lok Mishra, CEO of UBA UK, emphasized the landmark nature of the collaboration, noting that the partnership could mobilize capital where it is needed most and help close the trade finance gap that has long constrained African businesses.
Chris Chijiuitomi, BII’s Managing Director and Head of Africa, highlighted the institution’s commitment to catalyzing private sector growth through trade finance, particularly in frontier markets.
The collaboration aligns closely with the African Continental Free Trade Area (AfCFTA), which entered into force in 2021 and represents one of the world’s most ambitious trade integration initiatives.
Both UBA UK and BII see the operationalization of AfCFTA as a critical catalyst for supporting African businesses in navigating emerging continental markets.
The agreement also complements broader UK engagement with African economic development and reinforces the City of London’s role as a hub for Africa-focused capital mobilization.
The proposed cooperation remains subject to further assessment, due diligence, and internal approvals by both institutions.
UBA UK and BII’s collaboration signals a growing focus on unlocking Africa’s trade potential and creating pathways for sustainable economic growth across the continent.
