UBA Group and BII sign letter of intent to explore trade finance collaboration across Africa
— Anita okhipo
UBA Group and British International Investment (BII) have signed a Letter of Intent to explore a trade finance partnership across Africa. The collaboration aims to close the continent’s multi-billion dollar trade finance gap and improve access to funding for businesses, especially SMEs. If implemen…
UBA Group and BII Sign Landmark Deal to Boost Trade Finance Across Africa
LONDON / LAGOS — In a major move aimed at unlocking Africa’s economic potential, United Bank for Africa (UBA) Group and British International Investment (BII) have signed a Letter of Intent (LoI) to explore a strategic trade finance partnership across the continent.
The collaboration is designed to address one of Africa’s biggest economic challenges — a massive trade finance gap estimated at over $80 billion, which continues to limit the ability of businesses to import, export, and expand across borders.
Bridging Africa’s Trade Finance Gap
Trade finance plays a critical role in enabling businesses to participate in global commerce, providing tools like credit facilities, guarantees, and liquidity support. However, many African businesses — especially small and medium-sized enterprises (SMEs) — struggle to access these financial services.
Through this partnership, UBA and BII aim to:
Expand access to credit for African businesses
Support cross-border trade and supply chains
Improve liquidity in key sectors across the continent
The initiative is expected to leverage UBA’s strong pan-African network spanning over 20 countries alongside BII’s expertise in development finance and investment.
A Strategic Partnership with Global Impact
BII, the UK’s development finance institution, has been actively increasing its footprint in Africa, particularly in trade finance. The partnership with UBA signals a growing trend of global institutions collaborating with African banks to unlock capital and reduce risk in frontier markets.
This comes at a time when many international banks have reduced their exposure to African markets, making it harder for local businesses to secure trade financing.
Industry experts say partnerships like this could help:
De-risk African trade transactions
Attract more international investors
Strengthen Africa’s position in global supply chains
Supporting SMEs and Economic Growth
A key focus of the collaboration will be supporting SMEs, which make up the backbone of Africa’s economy but remain underserved by traditional financial systems.
By improving access to trade finance, the partnership could:
Enable businesses to scale operations
Increase intra-African trade under the African Continental Free Trade Area (AfCFTA)
Create jobs and stimulate economic growth
Currently, intra-African trade remains relatively low compared to other regions, highlighting the need for stronger financial infrastructure to support business expansion.
Part of a Broader Trend
The UBA–BII agreement is part of a broader wave of trade finance initiatives across Africa. In recent days, BII has also partnered with global institutions like Deutsche Bank to roll out funding facilities aimed at supporting trade across African frontier markets.
This signals increasing global confidence in Africa’s economic future, despite existing challenges.
Looking Ahead
While the agreement is currently a Letter of Intent, both parties are expected to develop concrete financing structures and programs in the coming months.
If successfully implemented, the partnership could significantly improve access to capital, strengthen trade networks, and accelerate Africa’s integration into the global economy.
For many businesses across the continent, this could mark the beginning of new opportunities — turning Africa’s trade potential into real economic growth.
UBA Group and BII sign letter of intent to explore trade finance collaboration across Africa