The agreement is expected to catalyze economic growth in these regions by increasing access to trade finance and liquidity.

This collaboration builds on a decade-long partnership between the two organizations.

Since the inception of their agreement in 2013, Standard Chartered and BII have facilitated over $10 billion in trade volumes across more than 10 countries, including Kenya, Tanzania, Nigeria, Bangladesh, Pakistan, and Nepal.

In the past year alone, the facility has supported approximately $450 million in trade.

The renewed agreement expands its scope to cover additional dynamic markets while focusing on key sectors such as agriculture, healthcare, technology, industrials, and infrastructure.

By addressing the global trade finance gap, this partnership aims to provide critical resources to businesses across diverse industries, promoting trade and economic transformation in these regions.

This initiative aligns with the United Nations’ Sustainable Development Goals (SDGs), particularly Decent Work and Economic Growth (SDG 8), Industry, Innovation, and Infrastructure (SDG 9), and Responsible Consumption and Production (SDG 12).

Commenting on the renewed partnership, UK Development Minister Anneliese Dodds emphasized its importance:

“I am delighted to see BII and Standard Chartered renew their facility to deliver trade finance throughout Africa and South Asia. This is an important partnership that will support SMEs and corporates to grow and deliver critical goods and services. Trade plays an important role in economic transformation, and this risk-sharing facility demonstrates how BII can work with financial institutions to support our shared development objectives.”

Nick O’Donohoe, CEO of BII, highlighted the significant impact of the partnership:

“We are proud of the positive impact that this long-standing trade finance facility with Standard Chartered has had in Africa and South Asia. By enabling over $10 billion in trade volumes, the facility continues to empower businesses and facilitate the vital flow of essential goods and services including food and healthcare. This is pivotal in supporting economic growth and creating new opportunities in these regions. It is also a step closer to narrowing the global trade finance gap.”

Saif Malik, CEO of Standard Chartered UK, underscored the bank’s commitment to driving global trade:

“As a leading international banking group, we play a vital role in enhancing access to the capital and liquidity that is essential for global trade. This strategic agreement will provide significant support to businesses with high potential but constrained access to finance. It aligns with our vision of connecting the world’s most dynamic markets in trade, investment, and capital flows.”

This renewed partnership reaffirms both organizations’ commitment to fostering sustainable economic growth, supporting SMEs, and delivering critical goods and services across Africa and South Asia.

The “Listed SME Debt Fund,” spearheaded by FSD Africa—a development finance institution supported by the UK government—aims to mobilize KSH 38.85 billion ($300 million) to bolster local businesses and drive economic growth.

This fund seeks to attract both local and international investors to Kenya’s SME sector, supporting job creation and fostering economic development.

Kenyan SMEs often struggle with interest rates as high as 40%, significantly hindering their growth.
The new fund will address this challenge by providing affordable credit, reducing borrowing costs, and enabling a diverse range of businesses to thrive.
Locally listed and managed, the fund will also encourage investments from Kenyan pension funds and institutional investors, ensuring benefits for both portfolios and the broader economy.
The fund’s first round of fundraising aims to raise $100 million, with $240 million targeted from Kenyan institutional investors and $60 million from international backers.

It is expected to support 10,000 SMEs, impact 50,000 households, and create close to 90,000 jobs. With its broad sectoral focus—ranging from agriculture to technology—the fund will lower capital costs for entrepreneurs across industries.

Neil Wigan, British High Commissioner to Kenya, highlighted the fund’s inclusive approach, emphasizing its potential to empower young people, women, and persons with disabilities—groups often excluded from traditional financial systems.

“This initiative aims to uplift the hardworking hustlers of Kenya by making credit more accessible and affordable,” Wigan said.

Kenyan pension funds, which collectively manage over $30 billion in assets, have historically underutilized alternative investment opportunities.
FSD Africa’s Listed SME Debt Fund offers these institutions a new avenue to diversify portfolios, ensuring stable returns while mitigating risks associated with SME lending.
Mark Napier, CEO of FSD Africa, underscored the critical role SMEs play in Kenya’s economy, noting that they constitute 98% of businesses and significantly contribute to employment.

Expanding access to credit, he stated, is key to enabling these enterprises to grow, create jobs, and compete globally.

“This fund will unlock opportunities for SMEs to thrive locally and expand internationally,” Napier remarked.

The Listed SME Debt Fund is set to play a pivotal role in strengthening Kenya’s economic resilience by bridging the financing gap for SMEs and fostering inclusive growth.