Standard Chartered has partnered with the UK’s development finance institution, British International Investment (BII), to sign a significant $350 million risk participation agreement. This facility is strategically designed to enhance the trade finance capacities of Small and Medium Enterprises (SMEs) and larger corporations across Africa and South Asia. The objective is to boost economic growth within these vital regions, recognizing the crucial role that trade finance plays in facilitating access to essential resources and capital. The agreement emphasizes a long-term commitment to increasing financial support for businesses operating in emerging markets and aims to address the unique challenges faced by SMEs in accessing trade finance.
Since establishing their initial agreement in 2013, Standard Chartered and BII have made considerable strides, enabling over $10 billion in trade volumes across more than ten countries in Africa and South Asia, including key markets like Kenya, Tanzania, Nigeria, Bangladesh, Pakistan, and Nepal. The collaboration has resulted in approximately $450 million of trade supported in just the past year, demonstrating its tangible impact on local economies and businesses. The renewed agreement seeks to expand its reach, catering to an even broader array of dynamic markets and helping to further enhance trade finance accessibility, liquidity, and support for economic growth across Standard Chartered’s extensive global network.
This facility is set to support multiple sectors that are essential to economic development, such as food, agriculture, healthcare, industrials, metals, infrastructure, electrical, electronics, technology, telecom, and mobility. By focusing on these critical industries, the partnership aims to empower communities and businesses by ensuring they have the necessary resources and financial backing to thrive. The collaborative effort aims not only to bolster trade but also to create an environment conducive to innovation and competitive growth in the regions served.
BII’s Chief Executive Officer, Nick O’Donohoe, expressed pride in the longstanding partnership with Standard Chartered and its positive influence in Africa and South Asia. He stated that the facility’s ability to facilitate over $10 billion in trade volumes significantly contributes to vital sectors such as food and healthcare. This commitment is particularly crucial for fostering economic progress and creating new opportunities in these regions and serves as a significant step toward mitigating the global trade finance gap that many businesses face.
The UK’s Development Minister, Anneliese Dodds, also highlighted the importance of this agreement by reaffirming the pivotal role of trade in economic transformation. She praised the partnership for delivering critical goods and services through support for SMEs and corporates, thereby facilitating economic growth. The approach reflects a broader commitment to achieving shared development objectives, showcasing how a collaborative effort among financial institutions can bring substantial benefits to the economies of Africa and South Asia.
Saif Malik, CEO of Standard Chartered UK and Head of Banking & Coverage, emphasized the importance of this renewed commitment in enhancing access to capital crucial for global trade. The agreement aligns with the bank’s vision of leveraging finance to support corporations that aspire to innovate and expand in dynamic markets. By bridging the funding gap for high-potential businesses, this strategic alliance between Standard Chartered and BII envisions a future where trade finance becomes more accessible, contributing to sustained economic development in the regions they serve.
