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British International Investment (BII) has announced a $150 million risk-sharing agreement with Deutsche Bank, marking the first collaboration between the UK development finance institution and the German lender.
The initiative is designed to increase the flow of trade finance into some of Africa’s most underserved and higher-risk markets, where access to capital remains limited.
The move comes at a time when Africa continues to face a major shortfall in trade financing.
The African Export-Import Bank estimates the gap at about $100 billion each year, with smaller and frontier economies bearing the greatest burden.
In many cases, available funding is directed toward larger and more stable markets, leaving less-developed countries with limited access to the credit needed to support trade.
The new programme is structured under a master risk participation agreement, which allows both institutions to share exposure while extending financing capacity.
Through this model, Deutsche Bank will work with its network of partner financial institutions across 42 African countries to provide short-term, revolving trade finance.
This is expected to help local banks increase lending to businesses involved in cross-border trade, particularly those importing essential goods such as machinery and industrial inputs.
The facility will focus largely on the least developed countries identified by the United Nations, including Zambia, Ethiopia and Rwanda.
These markets often struggle to attract sufficient financing due to higher perceived risks, despite strong demand for trade-related credit.
Industry observers note that reduced participation by international banks in some African markets has further tightened liquidity in recent years, making it harder for businesses to access trade finance and sustain operations.
The partnership between BII and Deutsche Bank is intended to address this gap by combining development finance with commercial banking expertise.
Anand Jha, Global Head of Trade Finance for Financial Institutions at Deutsche Bank, said:
“This partnership enhances our risk sharing capacity and strengthens our ability to facilitate sustainable cross-border transactions across the wider African market. By combining our global platform with BII’s development mandate and regional expertise, we aim to unlock greater trade flows to the continent.”
Ndaba Mpofu, Managing Director and Head of Financial Services Debt and Trade Finance at BII, added:
“We are delighted to partner with Deutsche Bank in a joint mission to expand trade finance into African frontier markets where our investment can deliver development impact at scale. Strengthening trade finance is vital for facilitating the movement of essential goods and commodities in our markets and supporting sustainable growth. Expanding access will help build a more resilient ecosystem and unlock economic opportunities across Africa.”
The initiative highlights a growing trend of collaboration between development finance institutions and global banks to reduce risk and unlock capital in emerging markets.
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