British International Investment (BII) has entered a $150 million risk sharing agreement with Deutsche Bank, marking the first partnership between the UK’s development finance institution and the German lender.
The deal aims to expand access to trade finance in some of Africa’s most underserved and higher risk markets, where businesses continue to face limited funding options.
It comes against the backdrop of a persistent financing gap across the continent. According to the African Export-Import Bank, Africa faces an estimated $100 billion shortfall in trade finance each year, with smaller and frontier economies hit the hardest.
In many cases, capital flows disproportionately to larger, more stable markets, leaving less developed countries struggling to access the credit needed to support cross border trade.
The new initiative is structured as a master risk participation agreement, allowing both institutions to share risk while increasing overall lending capacity. Under the arrangement, Deutsche Bank will leverage its network of partner financial institutions across 42 African countries to provide short term, revolving trade finance.
The funding is expected to support local banks in extending credit to businesses involved in trade, particularly those importing essential goods such as machinery and industrial inputs.
The initiative will primarily target least developed countries identified by the United Nations, including Zambia, Ethiopia and Rwanda markets that often face reduced access to financing due to higher perceived risks despite strong demand.
In recent years, a pullback by some international banks from parts of Africa has further constrained liquidity, making it more difficult for businesses to secure trade finance and maintain operations.
By combining development finance with commercial banking capabilities, the BII–Deutsche Bank partnership aims to help close this gap and unlock capital for trade across the continent.
Deutsche Bank’s Global Head of Trade Finance for Financial Institutions, Anand Jha said, 'The collaboration would strengthen the bank’s ability to support sustainable cross-border transactions across Africa.'
Ndaba Mpofu, Managing Director and Head of Financial Services Debt and Trade Finance at BII said, "Expanding access to trade finance is key to supporting the flow of essential goods and building more resilient economies across African markets."
The agreement reflects a broader shift toward partnerships between development finance institutions and global banks, as both sides look to de-risk investments and channel more capital into emerging markets.