The Standard Chartered Bank and British International Investment (BII), a UK development finance institution, have signed a US$100 million trade finance agreement aimed at expanding access to capital for businesses in Kenya and Tanzania.
- •The facility is expected to unlock more than US$450 million in trade flows over its lifetime, with a targeted emphasis on women-led enterprises and sectors crucial to economic development.
- •The new financing package will primarily support small and medium-sized enterprises (SMEs) and corporate clients engaged in agriculture, food production, healthcare, manufacturing, and infrastructure.
- •By enabling companies to access working capital to pay suppliers, import critical goods, and boost exports, the programme is expected to help ease liquidity constraints and accelerate trade growth across East Africa.
“Through our partnership with BII, this new trade finance facility further empowers local businesses – especially those owned or led by women – by providing them with the capital they need to scale, trade, and thrive. This initiative is a testament of our ongoing commitment to economic development as we champion innovation, diversity, and sustainable growth for our communities,” said StanChart MD and CEO, Kariuki Ngari.
The initiative aligns with the 2X Challenge, a global effort to advance gender-lens investing, by meeting criteria designed to increase economic participation for women. This includes support for businesses that are owned or led by women or that promote women in leadership, employment, and access to finance.
“Access to trade finance remains a critical constraint for businesses across East Africa, particularly for women-led enterprises and SMEs in key value chains. Through this facility with Standard Chartered, we’re enabling more businesses in Kenya and Tanzania to access the capital they need to thrive, create jobs and expand their reach,” said Seema Dhanani, Head of Office and Coverage Director for Kenya in the British International Investment (BII).
The deal follows a US$350 million risk participation agreement launched in November 2024 and extends a collaboration that began in 2013. The broader goal is to reduce the trade finance gap for underserved businesses across Africa and South Asia.
The partnership underscores a growing trend among development financiers to use blended capital structures and risk-sharing mechanisms to crowd in private sector investment in emerging markets. BII has committed to allocate at least 30% of its investments between 2022 and 2026 to climate-related finance, with inclusive finance remaining a key priority.
Many East African businesses are facing tightening credit conditions and rising input costs. By targeting key value chains and offering improved liquidity, the initiative is positioned to play a catalytic role in supporting jobs and scaling enterprises.