• British International Investment (BII) is investing $25 million in London Forfaiting Company.
• The funds will expand trade finance for small firms in Burkina Faso, Guinea, Mali and Niger.
• The move targets Africa’s $100 billion annual trade finance gap and supports local banks.

British International Investment (BII), the UK’s development finance institution, announced on September 30, 2025, a $25 million commitment to London Forfaiting Company, a firm focused on trade support in emerging markets.

London Forfaiting Company, part of KIPCO investment holding controlled by Kuwait’s ruling family, provides international trade finance as well as bilateral and syndicated loans through its global network.

The new funding is meant to improve access to trade finance for small businesses operating in frontier markets in West Africa, particularly in Burkina Faso, Guinea, Mali and Niger. It will mainly support imports of essential goods such as rice, wheat, industrial equipment and machinery.

The initiative aims to narrow Africa’s trade finance gap, estimated at about $100 billion per year, which hampers the growth of small and medium enterprises and limits cross-border trade. It also seeks to support local banks, which often lack liquidity or guarantees to fund their clients’ transactions.

BII said it prioritizes frontier markets, particularly in Africa, where commercial investors are often absent. These regions attract little private capital and are considered difficult places to do business.

According to the African Development Bank (AfDB), trade finance is a key driver of economic growth, particularly in emerging markets. In 2024, intra-African trade rose by 12.4% to reach $220.3 billion, supported in part by early gains from the African Continental Free Trade Area (AfCFTA). Still, African trade remains vulnerable to external shocks and volatile global markets.