A new $50 million trade finance agreement between British International Investment (BII) and Ghana International Bank (GHIB) is set to support businesses in The Gambia and six other African nations.
Under the deal, GHIB will provide loans to businesses through local banks in The Gambia, Sierra Leone, Liberia, Benin, DR Congo, Rwanda, and Tanzania. The initiative aims to boost trade by improving access to finance for companies struggling to secure support from global banks due to credit risks.
According to BII’s Ghana country director, Kwabena Asante-Poku, the partnership will help local businesses import essential commodities and equipment, enabling them to scale operations and increase trade. GHIB CEO Dean Adansi highlighted that the initiative would create jobs and stimulate economic growth.
Africa currently faces a trade finance deficit of up to $120 billion, making it difficult for small and medium-sized enterprises to access the credit they need to trade. The situation has worsened as several international banks, including Standard Chartered and Barclays, have reduced their presence in African markets due to economic challenges and perceived risks.
GHIB plans to collaborate with around 25 local banks across the participating countries, with the program set to run for three years. The initiative is expected to provide much-needed financial support for businesses and drive economic expansion in The Gambia and beyond.
