BRITISH International Investment (BII), the United Kingdom’s Development Finance Institution (DFI) and a prominent impact investor, has unveiled a game-changing initiative—a $60 million trade finance facility designed to empower Access Bank in Nigeria and five of its pan-African subsidiaries. This strategic move is set to bolster import and export capabilities among local businesses while bridging the foreign currency supply gap, thereby fostering economic development.
The programme further underscores BII’s steadfast commitment to fortifying financing environments in fragile economies and aligns with Access Bank’s ambitious strategy to facilitate continental trade. BII anticipates that this loan programme will generate a substantial boost in African trade volumes, estimated at an impressive $90 million.
This agreement reaffirms the enduring partnership between BII and Nigeria’s largest commercial bank by assets. It aims to provide systemic liquidity during a challenging macroeconomic climate marked by higher inflation and escalating capital costs. These factors have exerted significant downward pressure on currency performance, both domestically and in the programme’s targeted markets, namely the Democratic Republic of Congo, Mozambique, Rwanda, Sierra Leone, and Zambia. BII’s intervention at this critical juncture underscores the pivotal role of development finance institutions, such as BII, in extending countercyclical support to enhance economic resilience.
According to the World Trade Organisation, between 80 and 90 percent of global trade relies on the availability of trade credit. Prior to the Covid-19 pandemic, the financing gap for trade stood at $82bn in Africa—a gap that has only widened. Recognising the far-reaching positive effects of robust trade flows on economies and livelihoods, Access Bank aims to provide 15 percent of trade finance across Africa by expanding the trade books of its subsidiaries.
Currency instability in Nigeria has posed challenges to the proliferation of dollar-denominated trade loans across African markets, limiting countries’ ability to capitalise on opportunities presented by the African Continental Free Trade Agreement. By concentrating on import-dependent economies, many of which will be engaging with BII’s trade programme for the first time, the enhanced availability of US dollar-denominated trade loans will ensure the availability of vital commodities and manufacturing inputs for the production and export of goods. The ultimate outcome will be an improvement in livelihoods and the preservation of jobs for employees of importers and exporters who have limited access to foreign exchange trade loans.
The programme, targeting companies in construction, manufacturing, and fast-moving consumer goods (FMCG), will directly contribute to the United Nations Sustainable Development Goals 8 (Decent work and economic growth) and 9 (Industry, innovation, and infrastructure).
Simultaneously, this facility is designed to enhance inclusion. Qualifying under the 2X Challenge, which pr
omotes female participation and leadership in business, Access Bank will ensure that loan allocations deliberately advance its gender commitments. Additionally, the programme aligns with BII’s BOLD initiative, dedicated to enhancing the availability of finance at more affordable rates for Black, African-owned businesses.
Seyi Kumapayi, Executive Director of African Subsidiaries at Access Bank, expressed his enthusiasm, saying, ‘Access Bank is on a purposeful mission to scale intra-African trade and position the continent as a viable market for global trade. Hence, we are thrilled about the tremendous potential that this trade finance facility with BII affords us across our pan-African subsidiaries. This strategic collaboration not only strengthens our import and export capabilities but also expands our resources to support local industries—especially women-owned businesses—and ultimately drive economic growth. By stimulating trade volumes, we will be playing a key role in fostering long-term economic resilience for the continent while increasing its attractiveness for increased foreign investments.’
Admir Imami, Director and Head of Trade and Supply Chain Finance at BII, highlighted the significance of this partnership, saying, ‘Access Bank is a long-standing partner of BII’s, and our new partnership is a significant step closer to narrowing the trade finance gap in Africa, particularly in countries such as the DRC and Rwanda. Access to finance in fragile states is hugely constrained; often these countries are buffeted by macroeconomic events far beyond their control. BII and Access Bank share a conviction that building the resilience of these businesses by ensuring affordable access to foreign exchange is vital to keep intra-African trade moving and support the growth of inclusive economies
.’
Benson Adenuga, Head of Office & Coverage Director for Nigeria at BII, added, ‘Our latest commitment to Access Bank reiterates our assurance to this leading multinational institution and to Nigeria. It comes at a time when Nigeria’s fragile economic situation needs additional funding, particularly from counter-cyclical investors like development finance institutions. Our funding will help bolster the economy and ensure the availability of staple goods, medicines, and food across Africa.’
