The program employs a risk-sharing mechanism designed to support local banks in financing clients’ trade operations. By mitigating risks, the initiative aims to remove barriers to cross-border transactions and enhance the flow of goods and raw materials across African markets.
Anand Jha, Global Head of Trade Finance for Financial Institutions at Deutsche Bank, said, “This partnership strengthens our risk-sharing capacity and enhances our ability to facilitate sustainable cross-border transactions across the African market. By combining our global platform with BII’s development mandate and regional expertise, we aim to further stimulate trade flows to the continent.”
The facility will prioritize countries including Zambia, Ethiopia, and Rwanda, providing local banks with additional lending capacity to extend trade-related credit to businesses. These funds are expected to support the import of raw materials and industrial equipment, fostering local production chains and strengthening Africa’s industrial base.
Ndaba Mpofu, Managing Director and Head of Financial Services, Debt and Trade Finance at BII, highlighted the broader impact: “Strengthening trade finance is essential to facilitate the flow of critical goods and raw materials across our markets and to support sustainable growth. Expanding access to trade finance will help build a more resilient ecosystem and unlock new economic opportunities across Africa.”
The timing of the program aligns with growing intra-African trade, which Afreximbank reports reached $208 billion in 2024, marking a 7.7 per cent increase from the previous year. Analysts say the new facility could accelerate this momentum by easing liquidity constraints and improving access to credit for businesses across the continent.
By bridging financing gaps and supporting industrial development, the $150 million initiative represents a significant step toward boosting Africa’s trade infrastructure and strengthening the capacity of local financial institutions.