Absa secures $150m to bolster African SMEs, targets trade growth under AfCFTA

South Africa’s Absa Bank has secured a substantial $150 million facility from British International Investment (BII) aimed at financing sustainable trade transactions across Africa, with a special focus on women- and youth-led small and medium enterprises (SMEs).

The partnership, as stated in a joint release, is “making strides in advancing the efforts of the African Continental Free Trade Area agreement, which aims to reduce the continent’s trade finance gap.” This funding aligns with Absa’s commitment to facilitating R100 billion ($5.64 billion) in sustainability-related transactions by 2025.

Since 2019, the collaboration between Absa and BII has supported over $1 billion in African trade, underscoring a shared commitment to inclusive economic development. “We are delighted to continue our partnership with Absa, which is based on a shared ambition to progress inclusive and economic development, particularly for underserved groups including SMEs and women,” says Admir Imani, director and head of trade and supply chain finance at BII.

Imani also noted that the facility marries BII’s legacy of support in Africa with Absa’s cross-border expertise, aiming to increase accessibility to trade finance for African businesses and enhance essential supply chains, including food.

BII’s contribution reflects its continued investment in African trade, following a $100 million risk-sharing facility with Citi and a $10 million boost to NMB Bank Zimbabwe for agricultural exports earlier this year. Meanwhile, Absa has deepened its engagement with development institutions, recently collaborating with the International Finance Corporation on facilities supporting African agriculture and trade.