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TDB Secures $100 Million in Funding from UK’s BII to Enhance African Economic Growth

By Oluchukwu Ikemefuna

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The Trade and Development Bank (TDB) secured funding of $100 million from British International Investment (BII), the UK’s development finance division. The funding is a strategic move to strengthen economic resilience in Africa. 

TDB

TDB has established itself as a key player in financing African trade, sustainable growth, and regional integration. The bank did this with assets exceeding $5 billion.

The investment from BII aims to strengthen economic resilience by supporting vital trade finance activities and promoting agricultural development. These key attributes are crucial in tackling food insecurity across the region. 

TDB to Overcome Challenges With Funding From BII

TDB Group President and Managing Director, Admassu Tadesse, said: “TDB Group has been playing an important role in the trade finance space. The group often works countercyclically to contribute to the security supply of essential commodities in high-priority sectors. The sectors will include agriculture and healthcare. 

Additionally, this is the fourth facility we are signing with BII and its predecessor. We are pleased to continue building this strategic partnership. Through this new facility, enhance efforts to address ongoing supply chain disruptions and forex shortages, and their impact on food security.”

The investment will license TDB to support local businesses and financial institutions in several regions in Africa. Many African markets face various economic challenges, including currency depreciation, rising inflation, debt challenges, and climate-related vulnerabilities. 

These challenges are worsened by global economic factors such as the Russia-Ukraine conflict and post-COVID economic turbulence.

TDB Funding Reflects UK Dedication in Fostering Growth in Africa 

UK’s Minister of State for Development and Africa, Andrew Mitchell, stated, “This investment reflects the UK Government’s commitment to fostering economic and agricultural growth in Africa. 

It is anticipated to reduce trade barriers, facilitate resource access for businesses, and contribute to tackling food security challenges”.

Furthermore, BII highlighted that TDB will use the funding to fund trade transactions. Trade transactions, which include importing & exporting goods, commodities, and essential services across the region. 

BII Investment In TDB To Close Financing Gaps In Africa

This funding is crucial for overcoming the barriers to trade in Africa, including the retreat of international correspondent banks from the continent. Also, addressing the substantial trade financing gap which is estimated at $80-120 billion

Additionally, with enhanced access to the trade finance chain, businesses can engage more readily in import and export activities, facilitating increased cross-border trade, contributing to food security, and stimulating job creation, economic growth, and resilience in Africa.

Ndaba Mpofu, Director and Head of Financial Services Debt at British International Investment, said: “Through this investment, BII is focusing its capital on offering strategic support to key financial institutions in countries we have a long-term commitment to.”

“Finally, this facility with TDB aligns with our core mission of closing gaps in areas that empower local businesses to drive inclusive growth, boost trade flows, and strengthen economic resilience.”

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Abdullahi Kafayat
Abdullahi Kafayat

Abdullahi Kafayat is an enthusiastic writer interested in the tech world. She's a graduate of Obafemi Awolowo University and has a BSc in Chemistry. You can reach her at Kafayatabdullahi17@gmail.com.

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