- The Trade and Development Bank (TDB), an African-centred financial institution, and British International Investment (BII) have launched a $100 million finance facility.
- With this funding, the bank aims to strengthen economic resilience, facilitate agricultural development, and tackle food security challenges through vital support for trade finance activities.
- This move comes as Africa faces challenges such as inflation, currency depreciation, and rising debt.
Over the years, the Trade and Development Bank has financed trade, fostered sustainable growth, and promoted regional integration in Africa through trade finance, advisory services, asset management, and project and infrastructure finance.
In March 2024, TDB extended a three-year $2 million term loan to MPower Ventures Zambia Limited via the Trade and Development Fund (TDF) to improve Zambian access to modern and affordable energy solutions.
The BII funding will allow it to provide additional financial assistance to local businesses and financial institutions operating in key African markets.
Andrew Mitchell, UK Minister of State for Development and Africa, stated that this investment reflects the UK Government”s commitment to boosting economic and agricultural growth in Africa, and that it will lower trade barriers, assist businesses in accessing resources, expanding, and addressing food security concerns.
The collaboration between BII and TDB demonstrates their shared goal of empowering critical economic sectors, particularly small and medium-sized enterprises, to foster inclusive growth in Africa.
African countries’ inflation rates have been high in recent times. According to Statista, Zimbabwe had the highest inflation in Africa as of 2023. The rate increased by approximately 172% over the previous year, with Sudan following closely behind with an increase of more than 71%.
Meanwhile, Nigeria’s inflation rate rose to an unprecedented 29.90% in January 2024, up from 28.92% in December 2023.
The World Bank provided the Eastern and Southern African Trade and Development Bank (TDB) with a $300 million facility in February 2024 to support private sector projects in renewable energy and clean cooking in eligible World Bank International Development Association (IDA) member countries that are also TDB members.
