BII, Access Bank to Extend $60m Trade Finance Facility in Africa
Kayode Tokede
British International Investment (BII), the UK’s Development Finance Institution (DFI) and impact investor, has announced a $60 million trade finance facility for Access Bank Plc and five of its pan-African subsidiaries.
In a statement, BII said the funds will strengthen import and export capabilities amongst local businesses and plug the foreign currency supply gap.
“The programme deepens BII’s commitment to bolstering financing environments in fragile economies and supports Access Bank’s strategy to enable continental trade. BII estimates the loan programme will stimulate African trade volumes by $90 million. The agreement reinforces BII’s ongoing relationship with Nigeria’s largest commercial bank by assets and facilitates the provision of systemic liquidity during a period characterised by a challenging macroeconomic environment. Higher inflation and rising cost of capital have placed downward pressure on currency performance, both domestically and in the programme’s target markets of the Democratic Republic of Congo, Mozambique, Rwanda, Sierra Leone and Zambia, “it said.
The Executive Director, African Subsidiaries at Access Bank, Seyi Kumapayi in a statement said, “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 the 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.”
Director and Head of Trade and Supply Chain Finance at BII, Admir Imami noted: “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.”
Head of Office & Coverage Director for Nigeria, BII, Benson Adenuga added that, “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..”
