Deutsche Bank and BII launch $150M lifeline for African trade finance crisis
Deutsche Bank has teamed up with British International Investment (BII) to launch a $150 million risk-sharing programme for African trade finance. The initiative comes as international banks continue to scale back operations across the continent, leaving a growing funding gap. This marks the first formal partnership between the two institutions.
The move aims to support underserved markets where access to trade finance has become increasingly scarce in recent years.
Over the past five years, at least eight major international banks have either exited Africa entirely or sharply reduced their presence. Standard Chartered left Nigeria in 2024, while Barclays withdrew from Ghana and Kenya in 2023. Other departures include Absa from Nigeria (2022), Citibank from Nigeria (2023), and UBA from Ghana (2023). HSBC and BNP Paribas have also scaled back in specific markets, alongside Fidelity Bank's exit from Ghana this year.
The African Development Bank estimates the continent faces an annual trade finance shortfall of $100 billion, with smaller economies like Zambia, Ethiopia, and Rwanda among the hardest hit. Deutsche Bank's new programme will use an unfunded risk participation model, where BII acts as a financial backstop for local partner institutions. This structure allows Deutsche Bank to extend more credit while sharing the risk with BII.
The announcement follows a leadership change at Deutsche Bank, with Gerald Podobnik recently named co-head of the global corporate bank. He will share responsibility for the division with Michael Diederich, succeeding Ole Matthiessen in the role.
The $150 million initiative will focus on markets where international banks have retreated, helping to fill a critical funding gap. Deutsche Bank's stock currently trades at €25.80, around 14% below its 200-day moving average. The programme's success could determine whether similar risk-sharing models gain traction in African trade finance.
