British International Investment (BII) has revealed a US$100mn finance facility with the Eastern and Southern African Trade and Development Bank (TDB) to support essential trade finance activities, agricultural development and address critical challenges around food security
The facility will empower TDB to provide financial support to local businesses and financial institutions in key African markets in order to strengthen economic resilience there. TDB will use the financing to fund trade transactions, including importing and exporting goods, commodities and essential services across the region. This has been identified as crucial to overcoming the barriers to trade on the continent and addressing the trade financial gap.
With improved access to trade finance, businesses can engage more readily in import and export activities, facilitating increased cross-border trade, contributing to food security, and stimulating economic growth.
“This investment underscores the UK government’s commitment to supporting economic and agricultural development across Africa by empowering businesses, stimulating trade, and increasing the flow of essential goods and services,” said Andrew Mitchell, UK Minister for Development and Africa. “This funding will also help to lower trade barriers so that companies across the continent are better able to expand into overseas markets, access vital resources and tackle critical challenges such as food security.”
Admassu Tadesse, TDB Group president and managing director, added, "TDB Group has been playing an important role in the trade finance space, often working countercyclically to contribute to the security of supply of essential commodities in high priority sectors such as agriculture and healthcare. This is the fourth facility we are signing with BII and its predecessor. We are pleased to continue building this strategic partnership, and through this new facility, enhance efforts to address ongoing supply chains disruptions and forex shortages, and their impact on food security.”
This announcement follows a long line of actions BII is undertaking the underpin economic resilience on the continent. Most recently, Grwoth Investment Partners Ghana, a BII platform, showed its dedication to supporting SMEs in the West African country. Read about it at: https://africanreview.com/finance/bridging-the-financing-gap-for-ghana-s-smes
