Deutsche Bank and BII launch $150M programme to ease Africa's trade finance crisis
Deutsche Bank has teamed up with British International Investment (BII) to tackle Africa's trade finance shortage. The new $150 million risk-sharing programme aims to boost liquidity in underserved markets. This marks the first formal partnership between the two institutions.
The move comes as the bank's stock trades at €25.80, around 14% below its 200-day moving average.
The programme will focus on smaller African economies like Zambia, Ethiopia, and Rwanda. These markets face chronic liquidity shortages, with the African Development Bank estimating a $100 billion annual trade finance gap. BII will act as a financial backstop under an unfunded risk participation framework.
The initiative follows a broader trend of international banks scaling back in Africa. Over the past five years, at least 12 major lenders—including Standard Chartered, Barclays, and Citigroup—have reduced or exited operations in key regions like South Africa, Nigeria, and West Africa.
Meanwhile, Deutsche Bank has made a leadership change. Gerald Podobnik has taken over as co-head of the global corporate bank, replacing Ole Matthiessen.
The $150 million risk-sharing scheme will provide much-needed support to African businesses struggling with trade finance access. Deutsche Bank and BII's collaboration targets long-term liquidity improvements in markets where international banks have retreated. The programme's success could influence future investment decisions in the region.
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