British International Investment (BII) and Citi have launched a USD 100 million risk-sharing facility to support trade finance in frontier and emerging African economies, including Benin, Cameroon, Côte d’Ivoire, Rwanda, Tanzania, Uganda, and Zambia.
The new facility will help local businesses in these underserved markets to finance the import of economically productive goods, transport, essential equipment, and machinery, supporting the emergence of manufacturing industries in these countries.
BII is the UK’s development finance institution, which aims to support economic growth and development in emerging markets. Citi is one of the world’s leading global banks, with a presence in over 160 countries and jurisdictions.
The partnership between BII and Citi is expected to catalyze additional private sector investment in trade finance in these African economies, as well as support the development of local financial markets.
The facility will also promote the use of digital trade finance solutions, which can help to reduce transaction costs and increase efficiency.
BII’s Chief Executive Officer, Nick O’Donohoe, said, “We are delighted to partner with Citi to launch this important initiative, which will help to address the significant trade finance gap in Africa. By supporting local banks to provide much-needed financing to SMEs and other businesses, we can help to drive economic growth and job creation in some of the world’s poorest countries.”
Citi’s EMEA Head of Trade and Treasury Solutions, Manish Kohli, added, “Citi is committed to supporting the growth of trade and commerce across Africa, and this partnership with BII will enable us to extend our reach and support to even more clients across the continent. By leveraging our global network and expertise, combined with BII’s development finance capabilities, we can help to unlock the potential of African businesses and support the continent’s long-term economic growth.”
