• UBA UK, BII sign intent to expand trade finance in Africa
• Partnership targets funding gaps for intra-African trade businesses
• Initiative aims narrow $80bn annual trade finance shortfall

United Bank for Africa (UBA), through its UK subsidiary UBA UK, and British International Investment (BII), the UK’s development finance institution, have signed a letter of intent to explore cooperation in trade finance across Africa. The deal has yet to be finalized.

The planned partnership aims to expand access to financing for African businesses, especially those involved in intra-African trade.

If the partnership goes ahead, UBA UK would use the group’s network across 20 African countries to identify and structure transactions tailored to local needs. BII, for its part, could support deals seen as too risky by traditional lenders, in line with its mandate.

“As the Group's hub for Trade Operations, UBA UK is uniquely positioned to connect African businesses with the international financial system,” said Lok Mishra, chief executive of UBA UK. “Working alongside BII, we can extend that capability further — mobilising capital where it matters most and helping to close the trade finance gap that holds back so much African potential,” he added.

Africa’s trade finance gap remains wide

The collaboration is intended to help narrow Africa’s trade finance gap, which the African Development Bank (AfDB) estimates at more than $80 billion a year. The shortage is particularly severe in supply chain finance, where only 7% to 25% of demand is met. Yet the segment could be worth $60 billion, according to a report published by the United Nations Conference on Trade and Development (UNCTAD) in December 2025.

“Trade finance is a critical enabler of [private sector] growth,” said Chris Chijiuitomi, managing director and head of Africa at BII. “We welcome the opportunity to collaborate with UBA Group, whose pan-African network and deep institutional relationships can help advance our ambition to expand access to trade and working-capital finance, particularly in frontier markets,” he added.

The initiative comes as Africa pushes ahead with the African Continental Free Trade Area (AfCFTA), which aims to create a single market of 1.4 billion people with a combined GDP of $3.4 trillion. For that vision to become reality, African businesses need access to the financing required to expand trade.

SG