Absa Bank CIB has secured a US$150mn facility from the UK’s British International Investment (BII) to fund sustainable trade in Africa.
According to a joint press release, the financing will support transactions, including those benefiting women—and youth-led SMEs.
The press release says the partnership is “making strides in advancing the efforts of the African Continental Free Trade Area agreement, which aims to reduce the continent’s trade finance gap.” It also brings Absa closer to its aim of concluding R100bn (US$5.64bn) in sustainability-related transactions by 2025.
Since 2019, the partnership between Absa and BII has supported over US$1bn in trade across Africa, the press release says. “We are delighted to continue our partnership with Absa, which is based on a shared ambition to progress inclusive and economic development, particularly for underserved groups, including SMEs and women,” says Admir Imani, director and head of trade and supply chain finance at BII.
“The facility combines BII’s long history of support in Africa with Absa’s cross-border expertise, which will help to make trade finance more accessible to African businesses and improve the vital flow of essential goods, including food.”
BII has been involved in several trade finance facilities for African businesses this year, including a US$100mn risk-sharing facility with Citi in April and a US$10mn NMB Bank Zimbabwe facility to boost agricultural exports.
This recent deal also continues Absa’s longstanding work with development institutions to expand access to trade finance in Africa. This year, Absa signed two partnerships with the International Finance Corporation to support African agriculture, extending facilities to a Singapore-based company for African food imports and an East African coffee exporter.
