UBA Group and BII Formalize Intent to Collaborate on Trade Finance in Africa

Benson Adenuga, the West Africa Director and Head of Office for Africa Coverage at BII, along with Chris Chijiutomi, Managing Director and Head of Africa at BII, Lok Mishra, Chief Executive Officer of UBA UK, and Oliver Alawuba, UBA Group Managing Director and Chief Executive Officer, attended the signing of this letter of intent.

United Bank for Africa (UK) Limited, known as UBA UK, in partnership with British International Investment plc (BII), the UK's development finance institution, has announced a signed agreement intended to explore opportunities for collaboration in trade finance. The objective of this initiative is to expand access to trade and working capital facilities for enterprises operating throughout Africa.

A critical constraint on trade in Africa is the limited access to trade finance, which particularly affects small and medium-sized enterprises (SMEs). These businesses often find it challenging to obtain letters of credit, financial guarantees, and supply chain finance on competitive terms, restricting their ability to engage in import and export activities effectively. The African Development Bank has estimated that this trade finance gap exceeds USD 80 billion annually.

To address this challenge, UBA UK, as a subsidiary of UBA Group with extensive connections across a network spanning 20 African countries, aims to facilitate and structure significant trade finance deals. Concurrently, BII, striving to foster sustainable growth across the continent, will be able to support transactions that may fall outside typical commercial interests.

"The signing of this letter with BII marks a significant milestone for UBA UK and aligns with the UBA Group’s broader aspirations on the global stage. As the Group’s focal point for Trade Operations, we are well-positioned to integrate African businesses into the global financial framework. Partnering with BII will enhance this capacity, allowing us to mobilize financial resources where they are most needed and contribute to reducing the trade finance gap that limits African capabilities," stated Lok Mishra, Chief Executive Officer of UBA UK.

Chris Chijiutomi, Managing Director and Head of Africa for BII, emphasized, "British International Investment aims to stimulate private sector development across Africa, with trade finance being a vital component of that progress. We appreciate the chance to work alongside UBA Group, as their extensive pan- African network and established relationships can significantly help us fulfill our goal of broadening access to financing for trade and working capital, especially in emerging markets."

This collaboration aligns with the growing focus on intra-African trade, particularly propelled by the African Continental Free Trade Area (AfCFTA), which officially commenced in 2021 and is recognized as one of the largest trade integration efforts globally. Both organizations see operationalizing AfCFTA as a crucial driver for a future trade finance facility, leveraging UBA UK’s presence across key AfCFTA nations to support businesses in this new continental market.

Moreover, this partnership complements the UK Government’s wider commitment to economic growth across Africa, building on pledges made during the UK-Africa Investment Summit. It further reinforces London’s position as a central hub for international finance aimed at mobilizing capital that focuses on African development.

Any prospective collaborations will be subject to further evaluation, diligence, and completion of internal approvals from both organizations.