Standard Chartered and the British International Investment (BII), the UK’s development finance institution, have signed a $350 million risk participation agreement, aiming to strengthen trade finance for Small and Medium Enterprises (SMEs) and corporates across Africa and South Asia. This partnership is expected to accelerate economic growth in both regions by enhancing trade access and liquidity.
Since its inception in 2013, this collaboration has facilitated over $10 billion in trade across more than 10 countries, including key markets such as Kenya, Tanzania, Nigeria, Bangladesh, Pakistan, and Nepal. In the past year alone, around $450 million in trade was supported through this facility.
The renewed facility will broaden its reach to cover additional high-growth markets in Africa and South Asia. By leveraging Standard Chartered’s extensive global network, the initiative will expand support across sectors like food, agriculture, healthcare, technology, telecom, and infrastructure, among others.
Anneliese Dodds, the UK’s Development Minister, highlighted the strategic importance of the deal, stating, “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 essential role in economic transformation, and this risk-sharing facility demonstrates how BII can work with financial institutions to support our shared development objectives.”
BII CEO Nick O’Donohoe also underscored the impact of the partnership, stating, “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 $10 billion in trade volumes, the facility continues to empower businesses and facilitate the flow of essential goods and services, including food and healthcare. This is pivotal in supporting economic growth and creating new opportunities in these regions.”
Saif Malik, CEO and Head of Banking & Coverage, UK, Standard Chartered, echoed these sentiments, adding, “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, aligning with our vision of connecting the world’s most dynamic markets in trade, investment, and capital flows.”
Through this agreement, Standard Chartered and BII aim to strengthen trade finance opportunities, ultimately fostering economic resilience and growth across Africa and South Asia.
