Absa Group, one of the leading financial services providers in Africa, has secured a trade financing facility from the United Kingdom’s development finance institution to boost small enterprises across the African continent.
The Sh19.31 billion ($150 million) deal with British International Investment looks to ease the trade financing gap in Africa, which has been intensified by COVID-19, the Ukraine conflict, and regional supply chain disruptions.
With the gap estimated to be at between Sh12.87 trillion ($100 billion) and Sh15.45 trillion ($120 billion), the partnership looks to provide liquidity to small- and medium-sized businesses in Africa, which are mostly led by women and youth. The initiative aims to focus on sectors such as agriculture and health care.
Not only does this partnership support the advancement of the African Continental Free Trade Area (ACFTA), which also aims to bridge the gap, but it also fosters a more resilient and sustainable economy. This current deal reflects the depth of relationship between the partners and their shared vision for driving growth in emerging markets.
Since 2019, this partnership has offered much trade liquidity in countries like Kenya, Nigeria, Ghana, Uganda, Tanzania, and Mozambique, supporting over Sh128.72 billion ($1 billion) in trade volumes, even during the COVID-19 pandemic, which significantly strained trade liquidity in Africa.
