United Bank for Africa (UK) Limited (“UBA UK”) and British International Investment plc (“BII”), the UK’s development finance institution and impact investor, have signed a letter of intent to explore collaboration in trade finance, aiming to expand working capital facilities for businesses across Africa.
The proposed partnership seeks to tackle one of the continent’s most persistent structural constraints: access to trade finance. According to the African Development Bank, African businesses face an annual trade finance gap exceeding $80 billion, limiting their ability to secure letters of credit, guarantees, and supply chain financing on commercially viable terms. Small and medium-sized enterprises (SMEs) are disproportionately affected, constraining their capacity to export and import competitively.
“The signing of this letter with BII represents a landmark moment for UBA UK and for the UBA Group’s global ambitions. As the Group’s hub for Trade Operations, UBA UK is uniquely positioned to connect African businesses with the international financial system. 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,” said Lok Mishra, chief executive officer of UBA UK.
Chris Chijiuitomi, managing director and head of Africa at BII, highlighted the significance of the collaboration. “British International Investment is committed to catalysing private sector growth across Africa, and trade finance is a critical enabler of that growth. 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 remarked.
The announcement aligns with extended continental trade initiatives, particularly the operationalisation of the African Continental Free Trade Area (AfCFTA), which entered into force in 2021. AfCFTA represents one of the world’s most ambitious trade integration efforts, aiming to create a single market of over 1.4 billion people. Both UBA UK and BII have identified supporting businesses operating within the emerging AfCFTA market as a priority catalyst for a dedicated trade finance facility. UBA UK’s network across key AfCFTA economies positions it to play a major role in facilitating cross-border trade and unlocking working capital for enterprises operating within the continental framework.
Beyond the commercial imperative, the partnership complements the UK government’s ongoing engagement with African economic development, including commitments announced at the UK-Africa Investment Summit. The collaboration also underscores the City of London’s role as a global finance centre for Africa-focused capital mobilisation.
While the letter of intent marks a critical first step, future cooperation remains subject to further assessment, due diligence, and the completion of internal approvals by both institutions. Analysts note that, if operationalised successfully, the initiative could help close financing gaps that have historically constrained intra-African trade and SME growth, potentially supporting thousands of businesses across the continent.
With trade finance increasingly recognised as a linchpin of Africa’s economic growth, the UBA UK-BII collaboration represents a timely intervention that could transform how African enterprises access capital, participate in cross-border trade, and integrate into global supply chains.
