United Bank for Africa (UBA), through its UK subsidiary UBA UK, and British International Investment (BII), the UK’s development finance institution, have signed a letter of intent to explore a partnership in trade finance across Africa, though the deal has not yet been finalized.
The proposed collaboration is aimed at expanding access to financing for African businesses, particularly those engaged in intra-African trade.
If implemented, UBA UK would leverage the group’s presence in 20 African countries to identify and structure transactions suited to local markets, while BII could step in to support deals considered too risky by traditional lenders, in line with its development mandate, Ecofin Agency reported.
“As the Group’s hub for Trade Operations, UBA UK is uniquely positioned to connect African businesses with the international financial system,” said Lok Mishra, chief executive of UBA UK.
“Working alongside BII, we can extend that capability further, mobilising capital where it matters most and helping to close the trade finance gap that holds back so much African potential,” he added.
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The initiative is designed to help reduce Africa’s significant trade finance gap, which the African Development Bank (AfDB) estimates at over $80 billion annually.
The shortfall is especially pronounced in supply chain finance, where only 7% to 25% of demand is currently met, despite the segment being valued at up to $60 billion, according to a report published by the United Nations Conference on Trade and Development (UNCTAD) in December 2025.
“Trade finance is a critical enabler of [private sector] growth,” said Chris Chijiuitomi, managing director and head of Africa at BII. “We welcome the opportunity to collaborate with UBA Group, whose pan-African network and deep institutional relationships can help advance our ambition to expand access to trade and working-capital finance, particularly in frontier markets,” he added.
The move comes as Africa advances the African Continental Free Trade Area (AfCFTA), an initiative aimed at creating a single market of 1.4 billion people with a combined GDP of $3.4 trillion. Achieving this goal will depend heavily on improving access to financing for businesses seeking to scale trade across the continent.
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Image Credit: United Bank for Africa
