The renewal of the $350 million African trade finance facility by Standard Chartered and British International Investment (BII) aims to support Africa’s economic growth and trade landscape.
International bank Standard Chartered and British International Investment (BII), the UK’s development finance institution and impact investor, have announced the signing of a $350m risk participation agreement. This facility aims to bolster the trade-finance needs of SMEs and companies across Africa and South Asia and to boost economic growth in these regions.
Since the initial agreement in 2013, Standard Chartered and British International Investment have enabled over $10bn in trade volumes in over 10 countries across Africa and South Asia including Kenya, Tanzania, Nigeria, Bangladesh, Pakistan and Nepal. In the past year, approximately $450m of trade has been supported by means of this facility.
The renewed facility will cover an expanded number of dynamic markets and seek to provide much-needed support in trade and economic growth in Africa and South Asia by further enabling trade-finance access and liquidity across Standard Chartered’s extensive global network.
Empowering global trade
The UK’s development minister, Anneliese Dodds, said: “I am delighted to see BII and Standard Chartered renew their facility to deliver trade finance throughout Africa and South Asia. “This is an important partnership that will support SMEs and corporates to grow and deliver critical goods and services. Trade plays an important role in economic transformation, and this risk-sharing facility demonstrates how BII can work with financial institutions to support our shared development objectives.”
Nick O’Donohoe, chief executive officer, BII, said: “We are proud of the positive impact that this long-standing trade-finance facility with Standard Chartered has had in Africa and South Asia. By enabling over $10bn in trade volumes, the facility continues to empower businesses and facilitate the vital flow of essential goods and services including food and healthcare. This is pivotal in supporting economic growth and creating new opportunities in these regions. It is also a step closer to narrowing the global trade-finance gap.”
Fueling business growth
Saif Malik, chief executive officer, UK and head of banking & coverage, UK, Standard Chartered said, “We are thrilled to renew our commitment to work with BII in support of trade.
“As a leading international banking group, we play a vital role in enhancing access to the capital and liquidity that is essential for global trade. This strategic agreement will provide significant support to businesses with high potential but constrained access to finance.
“It aligns to our vision of the role that banking and finance can play in supporting the growth ambitions of corporations that innovate for the future by connecting the world’s most dynamic markets in trade, investment and capital flows.”
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