London, United Kingdom — 16 March 2026-British International Investment and Deutsche Bank have announced a $150 million risk sharing programme aimed at expanding trade finance capacity across several African frontier markets. The initiative is designed to increase the availability of short term financing that supports cross border trade in countries where access to trade credit remains limited.
The programme will operate through a Master Risk Participation Agreement, allowing the UK development finance institution to share trade finance risk with Deutsche Bank. The arrangement is expected to channel additional capital into African financial institutions that facilitate import and export transactions for local businesses.
Programme Targets Frontier African Markets
Trade finance availability in Africa remains constrained, with the financing gap estimated at approximately $100 billion annually, according to the African Export Import Bank. The shortage is particularly acute in smaller and higher risk markets where international banks often maintain limited exposure.
Under the new partnership, Deutsche Bank will utilise its network of relationships with domestic financial institutions across 42 countries to extend trade finance capacity to local banks. The additional liquidity is intended to support the import of essential goods and productive assets including machinery and industrial equipment.
According to the announcement, the programme will focus primarily on least developed countries identified by the United Nations, including Zambia, Ethiopia and Rwanda. By providing short term and replenishing trade finance capacity, the initiative aims to help local banks finance cross border trade transactions for businesses operating in these markets.
Anand Jha, Global Head of Trade Finance Financial Institutions at Deutsche Bank, said the partnership increases the bank’s ability to facilitate cross border transactions across African markets. He noted that risk sharing arrangements with development finance institutions can help expand trade flows by enabling banks to support transactions in markets that may otherwise face financing constraints.
Ndaba Mpofu, Managing Director and Head of Financial Services Debt and Trade Finance at British International Investment, said the collaboration is intended to expand access to trade finance in frontier economies where financial infrastructure and liquidity remain limited.
Collaboration Between Development Finance and Commercial Banks
The transaction illustrates how development finance institutions and commercial banks are increasingly working together to address trade finance shortages in emerging markets. Risk sharing programmes allow commercial lenders to expand trade related lending while limiting balance sheet exposure in higher risk jurisdictions.
Trade finance plays a critical role in global commerce by enabling exporters and importers to access working capital and payment guarantees for international transactions. However, smaller markets often struggle to attract sufficient credit lines from international banks due to compliance requirements and perceived risk levels.
Development finance institutions have therefore introduced guarantee programmes, liquidity facilities and risk participation structures designed to improve financing access for local banks supporting cross border trade.
British International Investment is the United Kingdom’s development finance institution, investing in businesses and financial institutions across emerging markets with the objective of supporting economic development and sustainable growth.
Digital Trade Outlook Analysis
The programme highlights the continuing importance of risk sharing mechanisms in expanding trade finance access across developing markets. As global supply chains diversify and trade corridors evolve, partnerships between development finance institutions and commercial banks are becoming an important tool for supporting cross border commerce in frontier economies. Such initiatives may also contribute to strengthening financial infrastructure that enables businesses in smaller markets to participate more actively in international trade.
Source: Deutsche Bank AG