London, March 03, 2025 – Ghana International Bank (GHIB) and British International Investment (BII) have launched a $50 million trade finance facility to bolster businesses in seven African frontier economies: Sierra Leone, Liberia, The Gambia, Benin, Democratic Republic of Congo, Rwanda, and Tanzania. This marks the first collaboration between these two UK institutions to tackle Africa’s trade finance shortfall, a critical barrier to economic growth in markets often overlooked due to high risk and low credit availability.
The facility, structured under a Master Risk Participation Agreement (MPRA), empowers GHIB to extend credit to local firms, facilitating the import of vital commodities and equipment. This move aims to stimulate trade flows, sustain business operations, and ensure the steady supply of essential goods at affordable prices. By addressing the chronic lack of credit appetite for these frontier markets, the partnership seeks to unlock economic potential where it is most needed.
Lord Collins of Highbury, the UK’s Minister for Africa, hailed the initiative: “I’m delighted to see two UK institutions coming together to strengthen economic ties with Africa. Africa’s trade financing gap is one of the continent’s most pressing challenges and access to this funding will enable local businesses to trade more with the world, including the UK. This partnership serves as another example of BII’s leadership in building opportunities for growth with the UK’s partners.”
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The deal comes at a time when many African economies grapple with tough conditions. Kwabena Asante-Poku, BII’s Country Director for Ghana, elaborated: “In recent years, many African countries have faced challenging economic conditions that have impacted growth and livelihoods. Trade remains a key driver of growth for African economies especially in frontier markets like Sierra Leone, Liberia and The Gambia. Enhancing the flow of trade credit and financial intermediation to these markets will ensure access to essential goods and services which in turn drives sustainable and inclusive economic growth. We are pleased to partner with GHIB to offer practical trade finance solutions to businesses in countries facing difficulties in accessing finance for imports and exports.”
Dean Adansi, CEO of GHIB, emphasized the strategic fit: “At GHIB we believe our success over the last 65 years is rooted in a deep understanding of African risk. This partnership with British International Investment represents a viable path through which we can structure partnerships that leverage this deep knowledge of risk into profitable and impactful transactions. With this deal, we are employing a structure that uses our deep knowledge and access of the market, harnessed together with the superior scale and capacity of BII. Together, we are bringing this to support and expand opportunity in these emerging markets enabling real GDP growth. Our research indicates that each dollar of trade unlocks about $1.3 into the GDP of our markets. We will work to make this deal a success, as it will open the way for more liquidity injections into the market.”
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GHIB’s extensive network and trade finance expertise, paired with BII’s capacity to provide foreign exchange dollar liquidity, positions this partnership to make a tangible dent in Africa’s trade finance gap. As economic headwinds persist, such initiatives could prove vital in sustaining growth across the continent’s most underserved markets.
