British International Investment (BII) and Deutsche Bank have launched a $150 million trade finance initiative aimed at improving access to funding for African businesses and addressing the continent’s estimated $100 billion annual trade finance gap. 

The programme, announced on March 16, targets high-risk and underserved markets across Africa where access to trade finance remains limited due to perceived investment risks and liquidity constraints. 

The initiative is structured as a risk-sharing facility, enabling local banks to expand their lending capacity and provide more credit to small and medium-sized enterprises (SMEs) engaged in import and export activities. By reducing the financial risks associated with cross-border transactions, the programme is expected to unlock capital and support trade flows across the continent. 

Speaking on the partnership, Deutsche Bank’s Global Head of Trade Finance for Financial Institutions, Anand Jha, said the collaboration strengthens the bank’s ability to facilitate sustainable trade across Africa. He noted that combining Deutsche Bank’s global network with BII’s regional expertise would help stimulate trade flows into underserved markets. 

The programme will prioritise frontier and least-developed economies, including Zambia, Ethiopia, and Rwanda, where access to trade finance is particularly constrained. Through the facility, local financial institutions will receive additional support to finance trade transactions, enabling businesses to import essential goods such as raw materials, machinery, and industrial equipment. 

Managing Director and Head of Financial Services, Debt and Trade Finance at BII, Ndaba Mpofu, emphasised that expanding access to trade finance is critical for facilitating the movement of goods and supporting sustainable economic growth. He added that the initiative would help build a more resilient financial ecosystem and unlock new opportunities for businesses across Africa. 

Many African banks face challenges in securing guarantees and accessing sufficient capital for trade financing, limiting their ability to support businesses. The new facility is expected to ease these constraints by improving liquidity and enabling banks to extend more short-term credit to SMEs. 

According to the African Export-Import Bank, Africa’s trade finance gap remains a major barrier to economic growth, particularly for SMEs that rely on access to credit to scale operations and participate in international trade. 

The initiative comes at a time when intra-African trade continues to grow, reaching $208 billion in 2024, and is expected to further accelerate as access to financing improves. 

By expanding trade finance capacity and supporting local banks, the BII–Deutsche Bank partnership is positioned to strengthen supply chains, boost industrial development, and enhance the participation of African SMEs in global and regional trade.

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