British International Investment (BII) has partnered with Deutsche Bank to launch a $150 million risk-sharing programme aimed at expanding trade finance across some of Africa’s most underserved markets.

“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,” said Ndaba Mpofu, Managing Director and Head of Financial Services Debt and Trade Finance at British International Investment.

“Strengthening trade finance is vital for facilitating the movement of essential goods and commodities in our markets and supporting sustainable growth.”

The initiative marks the first collaboration between the UK’s development finance institution and the German lender and is designed to increase the flow of capital to frontier economies where access to trade financing remains limited.

Trade financing in Africa continues to face significant constraints, with the financing gap estimated at about $100 billion annually, according to the African Export-Import Bank. Frontier markets are disproportionately affected, as available liquidity tends to flow toward larger, lower-risk economies, leaving smaller and more vulnerable markets underserved.

Under a Master Risk Participation Agreement (MRPA), the programme will provide ongoing, short-term and replenishing Trade Finance Financial Institutions (TFFI) capital capacity. By sharing risk on trade transactions, the initiative is expected to enable banks to support a higher volume of cross-border trade.

The programme will operate through Deutsche Bank’s network of domestic financial institution relationships across 42 countries and will help African businesses import essential goods such as machinery and other productive commodities needed to support economic activity.

The facility will primarily target the United Nations’ least developed countries in Africa, including Zambia, Ethiopia and Rwanda.

The transaction highlights how development finance institutions and commercial banks can collaborate to expand access to trade finance and support financial inclusion in frontier markets.

Anand Jha, Global Head of Trade Finance, Financial Institutions at Deutsche Bank, said the partnership would strengthen the bank’s ability to facilitate trade across the continent.

“This partnership enhances our risk sharing capacity and strengthens our ability to facilitate sustainable cross-border transactions across the wider African market,” he said. “By combining our global platform with BII’s development mandate and regional expertise, we aim to unlock greater trade flows to the continent.”