By Business Insider Correspondent
Standard Chartered Bank and British International Investment (BII), the UK’s development finance institution, have launched a US$100 million trade finance facility to unlock trade growth and ease liquidity challenges for businesses in Kenya and Tanzania.
The new facility aims to mobilise over US$450 million in trade flows across East Africa, with a focus on small and medium-sized enterprises (SMEs) and women-led businesses operating in high-impact sectors such as agriculture, food production, healthcare, infrastructure, and manufacturing.
“This facility empowers local businesses – especially women-owned – with the working capital they need to scale, trade, and thrive,” said Kariuki Ngari, MD and CEO of Standard Chartered Kenya and East Africa. “It reflects our long-term commitment to driving sustainable growth and inclusion across the region.”
Strategic sectors, gender inclusion
The financing aligns with the global 2X Challenge for gender-lens investing, targeting businesses that are women-owned, women-led, or that promote female participation in leadership, employment, or access to capital.
“Access to trade finance remains a critical constraint for East African businesses,” said Seema Dhanani, BII’s Head of Office for Kenya. “This partnership will help bridge that gap – especially for women-led enterprises and SMEs in essential value chains.”
Supporting trade ecosystem
The financing package is designed to offer working capital support to firms engaged in import and export activities.
This includes enabling businesses to pay suppliers, procure raw materials, import essential goods, and expand their export capacity – an important intervention amid tightening credit conditions and rising input costs.
The move builds on a US$350 million risk participation agreement signed in November 2024 and extends a longstanding collaboration between StanChart and BII that began in 2013.
The broader goal is to close the trade finance gap in Africa and South Asia through risk-sharing mechanisms and blended finance structures.
Boosting private investment
As part of its 2022–2026 strategy, BII has committed to allocating at least 30% of its capital to climate-related investments, while maintaining a strong focus on inclusive finance and private sector development.
By de-risking trade finance for local banks and targeting underserved sectors, the StanChart–BII partnership aims to unlock capital at scale, create jobs, and stimulate private investment in one of Africa’s fastest-growing regional markets.
As Kenyan and Tanzanian businesses navigate economic headwinds, this facility arrives at a critical time. With its strategic sector focus and gender-inclusive approach, the initiative is poised to play a catalytic role in transforming East Africa’s trade and investment landscape.
