African businesses receive Ksh.11.6 billion supply chain funding from BII, Citi
British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, has signed a Ksh.11.6 billion risk-sharing facility with Citi to unlock supply chain finance for African businesses.
The new facility will provide systemic liquidity and help Citi, a global leader in trade and supply chain finance solutions to grow its supply chain finance product across Africa.
Citi’s partnership with BII will improve working capital for large enterprises and small and micro-businesses across Africa, boost the supply of goods and services, enhance business growth and strengthen intra-African trade.
“BII’s Trade and Supply Chain Finance (TSCF) programme has supported US$ 20.9 billion of trade across Africa and South Asia through partnerships with regional, international financial intermediaries. Our partnership with Citi presents an opportunity to help catalyse greater commercial capital to African businesses, bolstering trade and supply chain activities throughout the continent,” said Admir Imami, Director, Head of Trade and Supply Chain Finance, BII.
The deal will demonstrate the potential for British finance combined with strategic partnerships to help reinforce Africa’s supply chains, foster dynamic UK-Africa trade links, and accelerate sustainable economic growth across the continent.
The new partnership will see increased financial access for underserved businesses, including women-owned and Broad-based Black Economic Empowerment (BBBEE) enterprises, promoting productivity and economic inclusion across the African continent.
Chris Cox, Citi’s Global Head of Trade and Working Capital Solutions, Treasury and Trade Solutions, said the deal will boost financial inclusion, support SMEs and improve the resilience for diverse suppliers and buyers across Africa.
“We are delighted to come together with BII to support the growth of supplier financing in Sub-Saharan Africa. Citi is committed to helping economic progress in the communities in which we operate. This agreement will enable us to expand our supply chain finance offering and increase credit to suppliers most in need, in particular the small and medium size enterprises that normally have limited access to financing,” said Cox.
The new Master Guarantee risk-sharing agreement will augment Citi’s supply chain finance volumes in the continent by up to Ksh. 46.56 billion.
The investment aligns with SDG 8 – Decent Work and Economic Growth and SDG 17 – Partnerships for the Goals.