On 4th March 2025, a significant announcement was made regarding a strategic investment of 50 million USD by Ghana International Bank (GIB) and British International Investment (BII) in African markets. This investment marks a significant milestone in the economic development of the continent and underlines the commitment of financial institutions to support the growth of African businesses.
Background to the financing
Ghana International Bank, a UK-based African financial institution, has entered into a USD 50 million trade finance agreement with British International Investment (BII) to finance organizations in eight countries on the continent.
In a statement, the UK’s Development Finance Institution (BII) said the trade finance facility would target investments in Tanzania, Rwanda, Sierra Leone, Liberia, Gambia, Benin and the Democratic Republic of Congo.
The investment aims to address these challenges by providing capital to African businesses, particularly in the agriculture, technology and infrastructure sectors. The financial commitment is also a sign of confidence in the growth potential of African markets.
Investment details
Ghana International Bank, established in 1995, is committed to supporting the economic development of Ghana and Africa in general. With a strong background in banking, GIB has invested in various projects across the continent. British International Investment, the UK government’s investment arm, aims to support sustainable development and job creation in Africa.
The 50 million USD investment will be spread across several key projects. According to statements from the two institutions, about USD 30 million will be allocated to initiatives in the agricultural sector, aimed at improving productivity and strengthening the supply chain. The remaining 20 million USD will be earmarked for technology projects, including innovative start-ups that seek to transform Africa’s digital landscape.
Strengthening local economies
By supporting local businesses, this investment will help strengthen the local economy and improve people’s living conditions. The impact will not only be limited to job creation. By improving access to finance, GIB and BII will enable businesses to grow, innovate and export their products. This could also lead to increased tax revenues for African governments, which will be able to invest more in infrastructure and public services.
To overcome these challenges, GIB and BII will need to work closely with local governments, non-governmental organizations and other private sector actors. Strategic partnerships will be essential to ensure that funds are used effectively and reach the businesses that need them most.
Partnerships to address trade finance gaps in Africa
According to the agreement signed in London, the collaboration between Ghana International Bank and BII leverages GHIB’s network and experience in trade finance. This partnership enables BII to address the growing trade finance gap in African markets, particularly in challenging economic conditions.
BII’s involvement in these markets is also poised to provide critical foreign exchange liquidity. A key factor in the importation of essential goods into GHIB’s operating markets.
Dean Adansi, Managing Director of GHIB, added: « This partnership with British International Investment represents a viable avenue through which we can structure partnerships that leverage this deep understanding of risk to deliver cost-effective and impactful transactions ».
Tracking the impact of this investment and assessing the results
The 50 million USD investment by Ghana International Bank and British International Investment is a step in the right direction for Africa’s economic development. By supporting SMEs and fostering innovation, these financial institutions are helping to create an environment conducive to sustainable economic growth. Going forward, it will be crucial to monitor the impact of this investment and assess the results achieved. Regular reporting on the use of funds and the results achieved will help ensure transparency and adjust strategies if necessary.
In conclusion, this investment represents an opportunity not only for African businesses, but also for investors. In particular, those looking to diversify their portfolios while contributing to the sustainable development of the continent. With continued commitment and close collaboration between the public and private sectors, Africa can realize its economic potential and become a key player on the global stage.
