British International Investment (BII) and Standard Chartered Bank have announced a strategic partnership to enhance trade finance access in Kenya and Tanzania through a $100 million facility. This initiative aims to de-risk and expand cross-border and local trade finance, supporting vital sectors such as agriculture, healthcare, and infrastructure, while promoting women’s economic empowerment under the 2X Challenge framework.
Expanding Trade Finance to Unlock Economic Growth
The newly launched $100 million trade finance facility will enable Standard Chartered to extend trade and working capital finance to companies operating in Kenya and Tanzania. Backed by a risk participation agreement with BII, the UK’s development finance institution, this facility is expected to facilitate over $450 million in trade transactions across East Africa.
Patrick Makau, Executive Principal and Head of Trade and Working Capital for Kenya and East Africa at Standard Chartered, emphasized the importance of this risk-sharing arrangement. He noted that amid ongoing geopolitical tensions and supply chain disruptions, such collaboration allows the bank to increase trade finance volumes and support businesses more effectively.
Focus on Empowering Women and Sustainable Development
A distinctive feature of this facility is its alignment with the 2X Challenge, an initiative launched to mobilize capital that economically empowers women in developing countries. This focus aims to support female-led enterprises and promote gender equality in the region’s trade ecosystem.
Nick O’Donohoe, CEO of BII, highlighted the facility’s impact since its inception in 2013, noting that it has enabled over $10 billion in trade volumes across Africa and South Asia. He stressed that facilitating the flow of essential goods such as food and healthcare is crucial for economic growth and narrowing the global trade finance gap4.
Supporting Key Sectors and Regional Trade
The facility targets critical sectors including agriculture, food production, healthcare, industrials, metals, infrastructure, technology, and mobility. It also supports Kenya and Tanzania’s growing trade relationship, where Kenya exported goods worth approximately $487.64 million to Tanzania in 2023. Major exports included soaps and lubricants ($56.59M), vehicles ($49.21M), pharmaceuticals ($36.30M), and iron and steel ($34.96M).
Tanzania’s exports to Kenya, valued at $176.52 million in 2023, included mineral fuels ($34.37M), cereals ($21.01M), vehicles ($11.89M), and coffee and tea products ($10.79M), demonstrating the vibrant bilateral trade dynamics that this facility aims to further stimulate.
Renewing Commitment to Frontier and Emerging Markets
This facility builds on a long-standing partnership between BII and Standard Chartered, which since 2013 has supported over $10 billion in trade volumes across more than 10 countries in Africa and South Asia. The renewed agreement expands coverage to dynamic markets and sectors, reinforcing efforts to boost economic growth and trade finance access for SMEs and corporates in frontier economies.
Saif Malik, CEO UK and Head of Banking & Coverage at Standard Chartered, remarked that this strategic agreement aligns with the bank’s vision to support businesses with growth potential but limited access to finance. He underscored the role of banking in connecting dynamic markets and facilitating global trade, investment, and capital flows.
Broader Economic and Environmental Impact
Beyond trade finance, BII has committed $5 million to support the rollout of 5,000 electric motorbikes and battery swapping infrastructure in Kenya, aiming to reduce carbon emissions by over 100,000 metric tonnes annually. This investment complements the trade finance initiative by promoting sustainable transport and clean energy solutions in East Africa.
The facility also supports several United Nations Sustainable Development Goals, including Decent Work and Economic Growth (SDG 8), Industry Innovation and Infrastructure (SDG 9), and Responsible Consumption and Production (SDG 12), reflecting a holistic approach to economic development3.
Opportunities for UK and Regional Businesses
The partnership presents opportunities for UK businesses to access new East African markets through de-risked trade finance, participate in sustainable development projects, and contribute to gender equality initiatives. UK Export Finance tools further facilitate project financing, enhancing collaboration between UK and East African enterprises.
The $100 million trade finance facility by British International Investment and Standard Chartered marks a significant milestone in strengthening trade finance infrastructure in Kenya and Tanzania. By enabling over $450 million in trade transactions and focusing on women’s economic empowerment and sustainable development, the partnership is poised to drive inclusive economic growth and deepen regional trade ties in East Africa.
