The facility aims to narrow Africa’s substantial trade finance gap, which is estimated to be between $100 and $120 billion.

This latest agreement continues a longstanding partnership between BII and Absa, which has delivered significant trade liquidity to countries such as Ghana, Nigeria, Kenya, Uganda, Tanzania, and Mozambique, supporting over $1 billion in trade volumes since 2019.

This new facility targets critical sectors across the continent, including agriculture, fast-moving consumer goods (FMCG), and healthcare.

It emphasizes sustainable and inclusive funding for small and medium-sized enterprises (SMEs) and businesses led by women and young entrepreneurs.

The initiative also qualifies for the 2X Challenge, an impact investment standard that promotes gender equality, inclusive leadership, and social progress.

UK Development Minister Anneliese Dodds highlighted the partnership’s importance, stating:

“This facility demonstrates BII and Absa’s shared commitment to address Africa’s estimated $100 billion trade financing gap, fostering sustainable and inclusive economic growth.”

Admir Imami, Director of Trade & Supply Chain Finance at BII, echoed the sentiment, noting:

“Our partnership with Absa is rooted in a mutual goal of advancing inclusive economic development, particularly for SMEs and women-led businesses. By combining BII’s support with Absa’s cross-border expertise, we aim to improve access to trade finance and the flow of essential goods across Africa.”

Charles Russon, Absa Group’s Interim Group Chief Executive Officer, added:

“Our reach across Africa and beyond positions us to facilitate the capital and trade finance needed by African businesses to scale. Through strategic partnerships, we are fostering sustainable growth and new opportunities in emerging markets, strengthening Africa’s economic ecosystem.”

The agreement was formalized at the World Bank Annual Meetings in the presence of Nick O’Donohoe, BII CEO, Anneliese Dodds, and Charles Russon.