The London-based bank and UK development finance institution plan to expand working capital and trade facilities for African businesses, leveraging UBA’s pan-African network and BII’s impact investment mandate.
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United Bank for Africa (UK) Limited (UBA UK) and British International Investment (BII), the UK’s development finance institution, have announced a letter of intent to explore trade finance collaboration aimed at expanding working capital and trade facilities for African businesses.
Access to trade finance remains a major challenge for many companies on the continent, particularly small and medium-sized enterprises (SMEs). Without adequate letters of credit, guarantees, or supply chain financing, businesses struggle to compete in international markets. The African Development Bank estimates the continent’s trade finance gap at over USD 80 billion each year.
UBA UK, the London-based arm of Africa’s Global Bank, plans to leverage its presence across the Group’s 20-country African network to structure and originate trade finance transactions. BII, with its mandate to support inclusive and sustainable growth, will help finance deals that may fall outside conventional commercial appetite.
“The signing of this letter with BII represents a landmark moment for UBA UK and for the UBA Group’s global ambitions,” said Lok Mishra, Chief Executive Officer of UBA UK. “As the Group’s hub for trade operations, UBA UK is uniquely positioned to connect African businesses with the international financial system. Working alongside BII, we can mobilise capital where it matters most and help close the trade finance gap that holds back so much African potential.”
Chris Chijiuitomi, Managing Director and Head of Africa at BII, added: “Trade finance is a critical enabler of private sector growth across Africa. Collaborating with UBA Group, whose pan-African network and institutional relationships are unmatched, will help us expand access to trade and working-capital finance, particularly in frontier markets.”
The initiative also aligns with the African Continental Free Trade Area (AfCFTA), which seeks to enhance intra-African trade, and complements the UK Government’s ongoing engagement with African economic development.
Both parties noted that further assessments, due diligence, and internal approvals are required before the collaboration becomes operational.