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Deutsche Bank and BII Launch $150M Trade Finance Lifeline for Africa

Global banks are retreating—but this bold $150M initiative could revive trade for Africa's struggling economies. Will it be enough to bridge the financing divide?

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1 min read
The image shows an old German banknote with a picture of a bird on it. The text on the paper reads...
The image shows an old German banknote with a picture of a bird on it. The text on the paper reads "Deutsche Bank und Disconto-Gefellichaft Berlin".

Deutsche Bank and BII Launch $150M Trade Finance Lifeline for Africa

Deutsche Bank has teamed up with British International Investment (BII) to launch a $150 million risk-sharing programme. The initiative targets underserved African markets struggling with a severe shortage of trade finance. It marks the first formal partnership between the two organisations.

The move comes as international banks continue to scale back operations across the continent, leaving gaps in critical financial services.

The programme operates under an unfunded risk participation framework. BII will act as a financial backstop, covering potential losses for Deutsche Bank's local partner institutions. This structure aims to encourage more lending in regions where trade finance remains scarce.

Africa faces an estimated $100 billion annual trade finance gap, according to the African Development Bank. Smaller economies like Zambia, Ethiopia, and Rwanda are among the hardest hit. The withdrawal of global banks, including Standard Chartered's recent exit from Uganda's retail and wealth banking sector, has worsened the situation. European lenders have increasingly pulled back, leaving regional players—such as South African banks—to fill the void, particularly in East Africa.

Deutsche Bank's new programme seeks to address these challenges by boosting access to trade finance. The bank's stock currently trades at €25.80, around 14% below its 200-day moving average. Meanwhile, Gerald Podobnik has taken over as co-head of the bank's global corporate division, working alongside Michael Diederich following Ole Matthiessen's departure.

The $150 million initiative will focus on markets where trade finance is limited. By sharing risk with BII, Deutsche Bank aims to support local businesses and financial institutions. The partnership reflects broader efforts to stabilise trade flows in Africa amid ongoing banking sector shifts.

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