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Ghana International Bank plc (GHIB) and British International Investment (BII) have announced a landmark $50 million trade finance facility aimed at supporting businesses in Sierra Leone, Liberia, The Gambia, Benin, the Democratic Republic of Congo (DRC), Rwanda, and Tanzania.
This marks the first collaboration between the two UK-based institutions, reinforcing their commitment to addressing Africa’s trade finance challenges.
The initiative, established under a Master Risk Participation Agreement (MPRA), is designed to enhance credit availability in frontier markets, where limited financial access often hampers economic growth.
By facilitating trade flows, the facility will enable businesses in these regions to secure essential commodities and equipment, fostering sustainable economic development.
Lord Collins of Highbury, the UK’s Minister for Africa, emphasized the significance of the partnership, stating:
“I’m delighted to see two UK institutions collaborating to strengthen economic ties with Africa. Africa’s trade financing gap remains a major obstacle to growth, and access to this funding will empower local businesses to engage more actively in global trade, including with the UK.”
BII’s Country Director for Ghana, Kwabena Asante-Poku, highlighted the economic benefits of the agreement, noting that trade plays a crucial role in driving growth, particularly in frontier markets.
“Ensuring the availability of trade credit and financial intermediation will provide access to essential goods and services, promoting sustainable and inclusive economic progress,” he said.
GHIB’s Chief Executive Officer, Dean Adansi, underscored the bank’s longstanding expertise in African markets, describing the partnership as a strategic step in leveraging its deep understanding of regional risks.
“With this deal, we are combining our market insights with BII’s scale and capacity to enhance trade finance opportunities. Research shows that every dollar of trade generates approximately $1.3 in GDP for these markets. We are committed to making this partnership a success, paving the way for further liquidity injections,” Adansi stated.
The collaboration between GHIB and BII is expected to help mitigate the trade finance shortfall in Africa by injecting crucial foreign exchange liquidity.
This will facilitate the import of key goods, ensuring businesses in these regions can maintain operations and expand their market reach amid challenging economic conditions.
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