United Bank for Africa (UBA) UK and British International Investment (BII) have signed a letter of intent to develop a trade finance collaboration, targeting the substantial financing gap that hinders business growth across Africa.
The African Development Bank estimates an annual trade finance deficit exceeding $80 billion on the continent. This shortfall particularly impacts small and medium-sized enterprises (SMEs), which often cannot access essential instruments like letters of credit or supply chain finance on viable terms, limiting their export and import competitiveness.
Under the proposed initiative, UBA UK, the London-based subsidiary of UBA Group and its designated hub for trade operations, will utilise its network across 20 African countries to identify and structure trade finance transactions. BII, the UK’s development finance institution, will consider supporting deals that may not meet conventional commercial criteria, aligning with its mandate for sustainable and inclusive growth in Africa.
Lok Mishra, CEO of UBA UK, stated the partnership extends the bank’s capability to mobilise capital for African businesses. Chris Chijiuitomi, BII’s Managing Director and Head of Africa, noted that trade finance is a critical enabler for private sector growth, and UBA’s pan-African presence can help expand access, especially in frontier markets.
The collaboration coincides with the implementation of the African Continental Free Trade Area (AfCFTA), a major initiative to boost intra-African trade. Both institutions view AfCFTA’s operationalisation as a catalyst for such a facility, with UBA UK’s footprint in key member states positioning it to support businesses in the new continental market. The move also supports broader UK-Africa economic engagement and reinforces London’s role as a finance hub for Africa-focused investment.
Final agreements are subject to comprehensive due diligence and internal approvals by both parties.
About United Bank for Africa (UK) Limited
UBA UK is the London subsidiary of UBA Group, one of Africa’s leading banks with operations in 20 African countries, the UK, the US, France, and the UAE. It serves as the Group’s trade operations hub.
About British International Investment
BII is the UK’s development finance institution and impact investor, targeting sustainable growth in developing countries. It invests in over 1,600 businesses across 66 countries, with net assets of £9.87 billion, and aims to allocate at least 30% of new commitments to climate finance between 2022 and 2026.
