LONDON: British International Investment (BII), the UK’s Development Finance Institution (DFI) and impact investor, has announced a $100 million finance facility with the Eastern and Southern African Trade and Development Bank (TDB). The investment is designed to strengthen economic resilience in Africa by supporting essential trade finance activities, fostering agricultural development and food security.
The facility will empower TDB to provide financial support to local businesses and financial institutions in several key markets in Africa.
Many African economies are facing various economic challenges, including currency depreciation, rising inflation, debt challenges, and climate-related vulnerabilities, all exacerbated by global economic factors such as the RussiaUkraine conflict and post-Covid economic turbulence.
TDB will use the money to fund trade transactions, including importing and exporting goods, commodities, and essential services across the region.
This allocation of capital is crucial for overcoming the barriers to trade in Africa, including the retreat of international correspondent banks from the continent, and addressing the substantial trade financing gap estimated at $80 – 120 billion.
With improved access to trade finance, businesses can engage more readily in import and export activities, facilitating increased cross-border trade, contributing to food security, and stimulating job creation, economic growth and resilience in Africa.
