Unlocking Africa’s Trade Potential: UBA UK and BII Join Forces to Close the Finance Gap

Africa’s entrepreneurs are ready to trade with the world, but too many are still held back by a lack of affordable trade finance. Recent analysis by African development finance institutions puts the continent’s trade finance gap at over USD 80 billion a year, and potentially closer to USD 120 billion as demand for finance outpaces supply. For small and medium‑sized enterprises in particular, rejected applications for letters of credit, guarantees and supply chain finance translate directly into missed opportunities, weaker supply chains and fewer quality jobs.

UBA UK’s new letter of intent with British International Investment (BII), the UK’s development finance institution and impact investor, is designed to change that trajectory. By combining UBA Group’s 20‑country African footprint with BII’s development mandate and risk capital, the partnership aims to expand access to the trade instruments that keep commerce moving – from letters of credit and guarantees to structured trade and working‑capital solutions.

As UBA Group’s hub for trade operations, UBA UK will originate and structure transactions for clients across key African markets, including fast‑growing and frontier economies. BII will support these transactions where additional risk capacity is needed, helping viable deals go ahead that might otherwise struggle to attract purely commercial funding, especially in markets where access to foreign currency and trade instruments is most constrained.

This collaboration comes at a pivotal moment for the African Continental Free Trade Area (AfCFTA). AfCFTA is reshaping the continent’s trade corridors, opening up a vast single market and creating new regional value chains in sectors such as agribusiness, manufacturing, logistics and services. Studies suggest that, with the right enabling conditions, AfCFTA could significantly increase intra‑African trade, support industrialisation and create millions of jobs – but only if businesses can access the financing required to move goods and services across borders. Without a step‑change in trade finance provision, the gains from AfCFTA risk remaining concentrated in a narrow set of larger markets and corporates, rather than the SMEs and local value chains that underpin inclusive growth.

This potential partnership also sits squarely within the UK Government’s new “Africa Approach”, which sets out a shift from a primarily aid‑driven relationship to one focused on trade and investment, mutual prosperity and African agency. In this strategy, the UK commits to partnering with African countries to boost sustainable economic growth, combat the climate crisis and support AfCFTA implementation, using tools such as British International Investment and UK Export Finance to mobilise private capital and support high‑quality jobs.

By anchoring this initiative in London, UBA UK and BII will be putting that vision into practice. The collaboration reinforces the City of London’s role as a global centre for Africa‑focused finance, while creating a more direct bridge between African opportunity and international investors. It also reflects a growing recognition that trade, investment and climate action need to move together: BII has committed a significant share of its new commitments to climate finance, and trade‑led growth will increasingly be judged by its ability to support greener value chains, more resilient infrastructure and low‑carbon innovation.

For African businesses, especially SMEs, the message is clear: there is a deepening pool of partners ready to back their regional and global ambitions. For UBA Group’s clients in Africa, the UK and beyond, this initiative underscores UBA UK’s role as a connector – mobilising capital where it matters most, helping clients navigate new trade corridors, and supporting the real‑economy flows that create jobs and build resilience.

With these plans, UBA and BII aim to help rewrite how African trade is financed in the AfCFTA era, shifting the narrative from “trade finance gap” to one of capital unlocked, supply chains strengthened and African businesses competing on equal terms in markets around the world.

Further Reading

Africa’s trade finance gap:

• African Business (2025). New initiative aims to close Africa’s $80bn trade financing gap
• ITFA (2022). Sustainable trade finance and African trade (White paper)
• Finance in Africa (2025). Africa’s $120 billion trade finance gap can’t be solved by banks alone

AfCFTA and UK-Africa partnership:

• African Union AfCFTA Secretariat – Trade integration materials
• UK Government (2025). The UK’s new Approach to Africa: Summary of consultation
• UK Government (2025). Launch of the UK’s new Approach to Africa