The UK’s development finance institution, British International Investment (BII), agreed a $50 million deal with Ghana International Bank (GHIB) to boost trade in seven African countries.
The agreement — which will see GHIB lend to businesses through local banks in Sierra Leone, Liberia, The Gambia, Benin, DR Congo, Rwanda, and Tanzania — aims to expand access to finance in frontier markets where firms lack the backing of global banks due to perceived credit risks, officials from BII and GHIB told Semafor.
The new partnership aims to deploy capital for the “biggest impact” by helping local businesses import the commodities and equipment needed to scale their businesses and increase trade, Kwabena Asante-Poku, BII’s country director for Ghana, said. Efforts to increase trade volumes will create jobs and spur economic growth through the “multiplier effect,” GHIB CEO Dean Adansi added.
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