(Ecofin Agency) - BII and Ghana International Bank (GHIB) have announced a partnership to finance cross-border trade in Sierra Leone, Liberia, Gambia, Benin, the DRC, Rwanda, and Tanzania. The deal aims to improve access to credit and reduce Africa’s trade finance gap.

British International Investment (BII) has teamed up with Ghana International Bank (GHIB), a London-based Ghanaian bank, to launch a $50 million trade finance deal aimed at supporting seven Sub-Saharan African countries. The initiative, announced yesterday, is designed to improve access to international trade financing for small and medium-sized enterprises (SMEs) in Sierra Leone, Liberia, Gambia, Benin, the Democratic Republic of Congo (DRC), Rwanda, and Tanzania.

Through this partnership, businesses in these countries will be able to more easily access trade credit from GHIB to import essential goods and equipment from abroad, particularly from the United Kingdom, which will help them grow their operations.

The deal aims to enhance the flow of trade credit in the targeted markets and address Africa’s significant trade financing gap, which is estimated to be between $90 billion and $120 billion annually. While trade remains a crucial driver of economic growth in Africa, the continent is often seen as a risky market by international banks, which limits their exposure to these economies.

GHIB, which claims a better understanding of African risks, believes it can structure partnerships that will expand trade opportunities in these emerging markets.

“At GHIB we believe our success (…) 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 (…) Together, we are bringing this to support and expand opportunity in these emerging markets enabling real GDP growth,” said Dean Adansi, the bank’s CEO.

In 2023, GHIB facilitated over $4 billion in funding for financial institutions in Ghana and approximately $5.7 billion across West Africa. The bank remains committed to supporting its clients in Africa despite the challenging economic environment.