Summary:
- The Trade and Development Bank (TDB) has secured $100 million from the British International Investment (BII) to support African businesses and financial institutions. This investment aims to enhance economic resilience, address food insecurity, and promote trade. TDB will use the funding to facilitate trade transactions, improve agricultural productivity, and strengthen partnerships with financial institutions.
The Trade and Development Bank (TDB) has secured $100 million in financing from the British International Investment (BII), a UK development finance institution, aimed at bolstering businesses and financial institutions across Africa.
Formerly known as the Eastern and Southern African Trade and Development Bank, TDB boasts assets exceeding $5 billion and is dedicated to promoting trade, regional economic integration, and sustainable development in Africa through various financial services such as trade finance, project financing, infrastructure financing, asset management, and business advisory services.
The recent investment from BII is geared towards enhancing economic resilience in the region by supporting vital trade finance activities, promoting agricultural development, and addressing pressing issues like food insecurity.
This financial arrangement will enable TDB to extend support to local businesses and financial institutions across key African markets.
“This investment underscores the UK government’s commitment to fostering economic and agricultural development throughout Africa by empowering businesses, facilitating trade, and ensuring the smooth flow of essential goods and services,” stated Andrew Mitchell, UK’s Minister of State for Development and Africa.
The collaboration between BII and TDB aligns with their shared vision of empowering critical sectors of the economy, including small and medium-sized enterprises, to foster inclusive growth across the continent.
Amidst various economic challenges faced by African economies, such as currency depreciation, inflation, debt issues, and climate-related vulnerabilities, the financing provided by TDB will be crucial in facilitating trade transactions, including imports, exports, commodities, and essential services, thus addressing the significant trade financing gap estimated between $80 billion and $120 billion.
Seema Dhanani, Head of Kenya office at BII, highlighted the importance of this collaboration in bolstering resilient economies and empowering communities across Africa, emphasizing initiatives to deepen capital markets and foster innovation.
The funding will enable local companies to procure essential agricultural inputs, enhancing local production capabilities, increasing agricultural productivity, supporting export sectors, and improving the overall quality of food products, thereby addressing immediate food security concerns.
TDB’s partnership with financial institutions plays a pivotal role in facilitating trade, ensuring the supply of essential commodities, particularly in sectors like agriculture and healthcare.
Admassu Tadesse, TDB Group President and Managing Director, emphasized the strategic importance of this partnership with BII in addressing supply chain disruptions and forex shortages, particularly affecting food security.
Improved access to trade finance is expected to encourage businesses to engage more actively in import and export activities, promoting cross-border trade, enhancing food security, and fostering job creation, economic growth, and resilience across Africa.
