United Bank for Africa (UK) Limited (UBA UK) and British International Investment (BII) have signed a letter of intent to explore trade finance collaboration.
The planned collaboration is aimed at expanding access to trade and working capital facilities for businesses across Africa.
Access to trade finance remains a constraint for businesses, especially small and medium-sized enterprises, which face challenges in securing letters of credit, guarantees and supply chain finance on commercial terms.
The African Development Bank estimates the trade finance gap in Africa at over USD 80 billion annually.
Chief Executive Officer of UBA UK Lok Mishra said the agreement reflects the bank’s role in connecting African businesses to the international financial system.
He said UBA UK, as the group’s hub for trade operations, will work with BII to support access to capital and address the trade finance gap.
BII said the collaboration aligns with its focus on supporting private sector growth in Africa and improving access to finance in emerging markets.
The institutions said the African Continental Free Trade Area (AfCFTA) presents opportunities for trade within Africa and that the proposed collaboration will support businesses operating across member countries.
The partnership also aligns with broader efforts to support economic development and trade flows between Africa and international markets.
Further steps will depend on additional assessments, due diligence and internal approvals by both parties.
