Team Blitz India
BRITISH International Investment (BII), UK’s development finance institution, has partnered with Citi to launch a $100-million risk-sharing facility. The collaboration was formalised during recent the World Bank’s Spring Meetings in Washington.
The initiative aims to enhance the business prospects of enterprises facing financial constraints by improving access to trade finance for small and medium enterprises (SMEs) and corporations operating in frontier and emerging African markets.
Post-Covid 19, the investment, production and import capability of local enterprises have been fractured by factors like high inflation, mounting interest rates, and soaring commodity prices. These hurdles are further compounded by the ongoing Russia-Ukraine conflict.
“This investment underlines BII’s commitment to supporting fragile economies across Africa in accessing vital goods to support food production, including fertiliser and agricultural machinery. By investing in countries where support is most needed, BII continues to take a lead in the fight against food insecurity,” said Andrew Mitchell, the UK’s minister for development and Africa.
The programme is designed to alleviate the acute foreign currency scarcity in these regions by bolstering trade finance liquidity through Citi’s extensive network of commercial banks. This mechanism empowers financial institutions to provide substantial support to African companies engaged in importing essential commodities such as wheat, fertiliser, rice, and sugar.
The partnership between BII and Citi will facilitate local businesses in obtaining finance for importing economically significant goods, including transportation, essential equipment, and machinery. Such assistance is pivotal for nurturing the growth of manufacturing sectors across various African nations.
