British International Investment and Absa Launch $150M Trade Finance Facility to Support African SMEs

British International Investment (BII) and Absa Group have recently announced a $150 million trade finance facility aimed at expanding access to sustainable and inclusive trade finance across Africa. This new initiative will support businesses in high-impact sectors such as agriculture, fast-moving consumer goods (FMCG), and healthcare, with a particular focus on small and medium-sized enterprises (SMEs) led by women and youth.

The partnership between BII and Absa has played a pivotal role in fostering trade volumes throughout Africa, facilitating over $1 billion in trade since 2019. This latest $150 million facility is intended to address Africa’s significant trade finance gap, estimated between $100 and $120 billion, by improving trade liquidity across the continent. Beneficiaries of the facility include businesses in Ghana, Nigeria, Kenya, Uganda, Tanzania, and Mozambique, which will receive much-needed support to stimulate local economies and promote sustainable growth.

UK Development Minister Anneliese Dodds highlighted the importance of the facility, saying, “This agreement represents a valuable step in tackling Africa’s trade financing gap, emphasizing sustainable economic growth that is both inclusive and supportive of underrepresented groups.” This facility aligns with the 2X Challenge, a global gender-lens initiative, recognizing its potential to drive positive social impact and leadership opportunities for women.

BII’s Director, Admir Imami, emphasized the alignment of this collaboration with the organizations’ shared goal of inclusive economic development, specifically mentioning the importance of SMEs and underserved groups. Charles Russon, Interim Group CEO at Absa, also underscored Absa's commitment to leveraging its extensive African presence to drive sustainable growth and foster opportunities for businesses to compete globally.

This facility announcement was made on the side-lines of the World Bank Annual Meetings, where representatives from both BII and Absa reiterated their dedication to supporting Africa’s economic ecosystem.

Source: https://www.bii.co.uk/