Absa Secures $150M from UK’s BII to Boost African SME Trade Financing
TLDR
- Absa Group partners with British International Investment (BII) to secure $150 million trade financing facility for African SMEs in agriculture and healthcare sectors.
- The partnership aims to address Africa's $100-$120 billion trade financing gap, impacted by COVID-19, Ukraine conflict, and supply chain disruptions.
- Absa and BII collaboration facilitates cross-border trade, supporting over $1 billion in trade volumes in countries like Nigeria and Kenya over the past five years.
Absa Group, a leading South African bank, secured a $150 million trade financing facility with British International Investment (BII) to support African small- and medium-sized enterprises (SMEs) in agriculture, healthcare, and other sectors.
This partnership aims to address Africa’s estimated $100-$120 billion trade financing gap, a challenge intensified by COVID-19, the Ukraine conflict, and regional supply chain disruptions. The funds will provide essential liquidity for SMEs across the continent, facilitating cross-border trade.
Absa’s Mosa Tshabalala noted that the partnership with BII has supported over $1 billion in trade volumes in countries like Nigeria and Kenya over the past five years. The current $150 million facility is earmarked for markets with high trade finance needs but limited commercial funding access.
You can follow Daba’s reporting on Africa on WhatsApp. Sign up here
Key Takeaways
The trade financing gap in Africa hinders SMEs’ growth and economic integration due to limited access to affordable cross-border trade funds. Development finance institutions like BII play a crucial role, bridging financing gaps left by commercial banks. Trade financing supports essential cross-border transactions by covering shipping, insurance, and raw materials costs, allowing businesses to operate despite cash flow constraints. Absa’s regional presence in 12 African countries, coupled with BII’s support, positions the lender to expand its reach in high-demand areas, enabling SMEs to scale and compete internationally. As Absa and BII explore more targeted initiatives, this partnership could help foster sustainable trade development across Africa.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.