British International Investment (BII), the UK’s development finance institution, and global bank Citi announced a $100 million partnership today to address trade finance challenges faced by African businesses.
This initiative targets small and medium-sized enterprises (SMEs) and corporations with high growth potential but limited access to financing. The partnership aims to bridge the widening trade finance gap in Africa, which has been exacerbated by the COVID-19 pandemic and the war in Ukraine.
The facility will provide much-needed liquidity to Citi’s network of commercial banks across Africa. This will allow them to better support local businesses in importing essential commodities like wheat, fertilizer, rice, and sugar.
“This investment underlines BII’s commitment to supporting fragile economies across Africa in accessing vital goods to support food production,” said Andrew Mitchell, UK Minister for Development and Africa. “By investing in countries where support is most needed, BII continues to take a lead in the fight against food insecurity.”
BII, an impact investor, aligns its activities with the UK government’s clean growth agenda and promotes sustainable economic development in targeted regions. The funding comes at a critical time when African businesses grapple with high inflation, rising interest rates, and increased commodity prices.
This initiative will particularly benefit businesses in Benin, Cameroon, Côte d’Ivoire, Rwanda, Tanzania, Uganda, and Zambia. It will help them secure crucial imports for manufacturing and other productive activities.
“Our investment with Citi deepens BII’s footprint across the continent and supports local businesses struggling to maintain and expand operations due to a lack of capital,” said Nick O’Donohoe, CEO of BII. “This facility is a testament to our commitment to tackling complex issues such as food security in Africa by extending liquidity solutions to strategic sectors.”
“Citi is proud to work with BII in seeking to strengthen trade and food security in frontier and emerging African economies,” said Stephanie von Friedeburg, Head of DFI Strategic Partnerships at Citi. “Today’s announcement brings together BII’s long history of support in the region with Citi’s unique cross-border vantage point.”pen_sparktunesharemore_vert
