Categories: BusinessNews

UBA, BII move to boost trade finance access across Africa

United Bank for Africa and British International Investment have signed a letter of intent to explore a strategic partnership aimed at expanding trade finance across Africa.

The agreement, announced in London on March 16, 2026, will see UBA’s UK subsidiary collaborate with BII to improve access to trade and working capital for businesses, particularly small and medium-sized enterprises (SMEs), across the continent.

Access to trade finance remains a major barrier to African trade, with many businesses unable to secure instruments such as letters of credit, guarantees, and supply chain financing on competitive terms. According to the African Development Bank, the continent faces an annual trade finance gap of over $80 billion.

Under the proposed collaboration, UBA UK will leverage its network across 20 African countries to originate and structure trade finance deals, while BII will support transactions that may fall outside traditional commercial risk appetite, in line with its mandate to drive inclusive and sustainable growth.

Chief Executive Officer of UBA UK, Lok Mishra, described the agreement as a milestone for the bank’s global ambitions, noting that the partnership would help mobilise capital to underserved markets and unlock Africa’s trade potential.

On his part, Chris Chijiutomi, said the initiative aligns with BII’s commitment to catalyse private sector growth, adding that trade finance is a critical driver of economic development, especially in frontier markets.

The collaboration is also expected to support the implementation of the African Continental Free Trade Area, which aims to deepen intra-African trade and economic integration. Both institutions identified AfCFTA as a key catalyst for expanding trade finance solutions across the continent.

The move complements broader UK-Africa economic engagement efforts and reinforces London’s role as a global financial hub for Africa-focused investments.

However, both parties noted that the partnership remains subject to further assessments, due diligence, and internal approvals.

LUKMAN ABDULMALIK

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