- The facility will focus on providing sustainable and inclusive funding, particularly to women and youth SMEs operating in high-impact sectors such as agriculture, FMCG and healthcare.
- The long-standing partnership with Absa has facilitated over $1bn in trade volumes in Africa since 2019.
British International Investment (BII), the UK’s development finance institution and impact investor, today announced a $150 million trade facility with Absa Group to help close the trade finance gap in Africa, which is estimated to be between $100 and $120 billion.
Since 2019, the partnership has provided much-needed trade liquidity in countries such as Ghana, Nigeria, Kenya, Uganda, Tanzania, and Mozambique – supporting over $1 billion in trade volumes, including over the course of the COVID-19 pandemic, which severely strained trade liquidity in Africa.
The facility will build on this to provide crucial trade finance to businesses across Africa, with a focus on sustainable and inclusive funding. This includes supporting strategic sectors such as agriculture, FMCG and healthcare and underserved groups comprising small and medium sized enterprises (SMEs), particularly those led by women and youth. The investment qualifies for 2X for promoting gender equality, inclusive leadership, and social impact.
The UK’s Development Minister Anneliese Dodds said: “I am happy to see BII support Absa through this important facility, which is part of a long-standing partnership to help fill Africa’s estimated $100bn to $120bn trade financing gap. Today’s signing demonstrates BII and Absa’s continued commitment to addressing that pressing challenge together, focusing on sustainable and inclusive economic growth.”
Admir Imami, Director, Head of Trade & Supply Chain Finance, BII added: “We are delighted to continue our partnership with Absa which is based on a shared ambition to progress inclusive and economic development, particularly for underserved groups including SMEs and women. The facility combines BII’s long history of support in Africa with Absa’s cross-border expertise, which will help to make trade finance more accessible to African businesses and improve the vital flow of essential goods including food.”
Charles Russon, Interim Group Chief Executive Officer, Absa Group commented: “Our extensive presence across the continent, combined with our global reach, enables us to facilitate the flow of capital and trade finance that African businesses need to scale and compete internationally. By leveraging our cross-border expertise and strategic partnerships, we are driving sustainable growth and creating new opportunities in emerging markets, contributing to the broader development of Africa’s economic ecosystem.”
The agreement was signed on the sidelines of the World Bank Annual Meetings with Nick O’Donohoe – BII CEO, Anneliese Dodds – UK Minister for Development and Charles Russon – Interim Group CEO, Absa Group.
