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Home Business & Economy

UK launches $100m trade boost for East Africa

by Editorial Staff
1 year ago
in Business & Economy
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KEYPOINTS:

  • UK and partners launch $100m trade finance for East African SMEs
  • $5m pledged for electric motorbike rollout in Kenya
  • Forum deepens UK–East Africa investment ties across key sectors

A LANDMARK $100 million trade finance facility has been launched by British International Investment (BII) and Standard Chartered Bank, marking the UK’s renewed commitment to East Africa’s economic growth. Announced at the UK–East Africa Trade and Investment Forum (EATIF) held in London, the facility is designed to de-risk cross-border trade, improve access to essential goods and services, and specifically support women-led businesses in Kenya and Tanzania.

Expected to enable over $450

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million in trade throughout its lifespan, the facility forms part of a broader UK initiative to strengthen investment links with East Africa’s fast-growing economies.

UK backs clean tech with e-mobility boost

In a second major pledge, BII committed $5 million to expand Kenya’s electric motorbike infrastructure. The investment includes t

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he rollout of 5,000 electric bikes and the development of battery-swapping stations—an initiative expected to cut carbon emissions by more than 100,000 metric tonnes annually and support the transition to green transport.

Together, these investments signal the UK’s strategic intent to combine commercial growth with sustainability and inclusion across the East African region.

Forum unites business, government, and development actors

The UK–East Africa Trade and Investment Forum, held on 2025 21–22 May, was hosted by the Eastern Africa Association (EAA) in partnership with the UK Foreign, Commonwealth & Development Office (FCDO) and DMA Invest. The event brought together nearly 500 delegates, including senior representatives from Kenya, Uganda, and Tanzania, alongside UK policymakers and business leaders.

Lord Collins, UK Minister for Africa, and Kate Osamor MP, UK Trade Envoy to East Africa, opened the forum. They were joined by top regional officials such as Gen Katumba Wamala, Uganda’s Minister of Transport and Works; Msafiri Lameck Mbibo of Tanzania’s Ministry of Trade; and Abubakar Hassan Abubakar representing Kenya.

UK remains a key economic partner

The United Kingdom remains one of East Africa’s largest investors across sectors including financial services, agriculture, manufacturing, and technology. With global trade dynamics shifting and East Africa advancing economic integration, the forum served as a timely platform to reaffirm the region’s attractiveness as a strategic, stable destination for UK capital and partnerships.

Reform and regional integration take centre stage

The Eastern Africa Association used the forum to spotlight regional momentum around regulatory reform, climate-smart investment, and infrastructure development. EAA Chairman Lord Valentine, along with board members Jeremy Lefroy, Kamal Shah, and Agnes Gitau, underscored East Africa’s readiness for scaleable, long-term investment.

Breakout sessions explored priority sectors such as renewable energy, manufacturing, healthcare, and access to capital, while panel discussions featured public and private sector leaders outlining pathways to unlock value through partnership.

Building a bridge for sustainable investment

Delegates praised the forum for creating space for real dialogue, not just diplomacy. It strengthened existing relationships and opened the door for new commercial opportunities and co-investment models.

In a closing statement, the Eastern Africa Association said: ‘We are committed to growing this platform to deliver even greater results in the years ahead.’

As East Africa’s economies continue to expand, the UK’s dual focus on inclusive finance and green innovation signals a long-term shift toward sustainable, mutually beneficial investment in the region.

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Editorial Staff

Editorial Staff

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