Deutsche Bank and British International Investment partner to support trade finance across African frontier markets

Deutsche Bank and British International Investment (BII) have announced a partnership to launch a $150 million risk-sharing programme. This initiative would channel increased capital and support a higher volume of trade flows into some of Africa’s most challenging and underserved frontier markets.

Addressing the trade finance gap in Africa

Trade financing in Africa remains severely constrained, with an estimated annual gap of $100 billion, according to the African Export-Import Bank. Frontier markets are disproportionately affected, as available liquidity tends to concentrate in larger, lower-risk economies, leaving smaller and more vulnerable markets underserved.

Anand Jha, Global Head of Trade Finance, Financial Institutions, Deutsche Bank, said, “This partnership enhances our risk sharing capacity and strengthens our ability to facilitate sustainable cross-border transactions across the wider African market. By combining our global platform with BII’s development mandate and regional expertise, we aim to unlock greater trade flows to the continent.”

Impact on trade and financial inclusion

The partnership will offer short-term, replenishing capital capacity to Trade Finance Financial Institutions (TFFIs) under a Master Risk Participation Agreement (MRPA).

Leveraging Deutsche Bank’s extensive network of domestic financial institution relationships across 42 African countries, the programme will enable businesses to import essential commodities and productive goods, including machinery.

The programme will primarily focus on Africa’s least developed countries as defined by the United Nations, including Zambia, Ethiopia, and Rwanda.

Ndaba Mpofu, Managing Director and Head of Financial Services Debt and Trade Finance at BII, said, “We are delighted to partner with Deutsche Bank in a joint mission to expand trade finance into African frontier markets where our investment can deliver development impact at scale.”

“Strengthening trade finance is vital for facilitating the movement of essential goods and commodities in our markets and supporting sustainable growth. Expanding access will help build a more resilient ecosystem and unlock economic opportunities across Africa,” he added.

This transaction shows how development finance institutions and commercial banks can collaborate to support trade flows and promote financial inclusion in frontier economies.