IN a landmark announcement, British International Investment (BII) disclosed its commitment to provide a $100 million finance facility to the Eastern and Southern African Trade and Development Bank (TDB), aiming to bolster trade finance, farming initiatives, and food security across the region. This initiative comes at a critical juncture as African economies grapple with currency depreciation, mounting debt, and inflation, exacerbated by the impacts of climate change.
Andrew Mitchell, Britain’s Minister for Development and Africa, underscored the UK government’s unwavering support for economic and agricultural advancement across Africa, stating, ‘This investment underscores the UK government’s commitment to supporting economic and agricultural development across Africa.’
The infusion of capital is poised to address the pressing needs of African nations, with Admassu Tadesse, President and Managing Director of TDB Group, highlighting its significance, ‘This partnership will help address supply chain disruptions and forex shortages, often working counter-cyclically to contribute to the security of supply of essential commodities in high priority sectors such as agriculture and healthcare.’
According to recent research from the African Development Bank, there exists a substantial finance gap of up to $120bn annually in the region, underscoring the critical importance of initiatives such as this finance facility.
‘BII’s commitment to allocate at least 30 percent of its new commitments by value to climate finance between 2022 and 2026 reflects our dedication to sustainable development,’ stated a spokesperson for BII, emphasising their alignment with global sustainability goals.
The collaboration between BII and TDB marks the fourth finance facility agreement between the two entities, signalling a concerted effort to foster economic development and resilience in Africa. This partnership aims to stimulate cross-border trade, enhance food security, generate employment opportunities, and fortify economic resilience in the region.