British International Investment (BII) and INOKS Capital have announced the launch of a $25 million trade access program to boost trade on the African continent by supporting the growth of small and medium enterprises.

This is contained in a press release from British International Investment seen by Nairametrics.

The Trade Access Program (TAP) is being launched with $25 million in capital from British International Investment, the UK’s development finance institution and impact investor. The capital will be used to fund SMEs and business intermediaries such as agritechs, fintechs and alternative trade financiers in Africa.

The program aims to help extend credit to businesses in the agribusiness sector, including aggregators, e-commerce platforms, SME-focused banks and non-bank financial institutions. According to the investment company, the capital will increase trade and food supply, help develop local infrastructure and rejuvenate businesses that improve the market and meet consumer and business needs. This will in turn promote long-term economic growth and contribute to a productive, sustainable and inclusive future.

In addition to fostering trade, job creation, local incomes and generating positive impacts on climate change, TAP aims to drive economic inclusion by specifically seeking to improve access to finance for women by targeting investments eligible for the 2X Challenge. The 2X criteria will be used to determine if a business can be considered woman-owned, woman-led, or woman-supporting.

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What they say

Welcoming the launch of the program, Nabil Marc Abdul-Massih, CEO of INOKS Capital, said: “Securing this investment from BII entrusts our entire team with using its field-tested DNA, know-how and capabilities to achieve the investment objective. Thanks to TAP’s efficient and impactful investments in improving trade in Africa, we strive to implement this partnership in synergy with BII’s vast network and resources so badly needed for social upliftment and economic growth.

Along the same lines, Ivan Agabekov, CFO of INOKS Capital, said that: “Our team looks forward to skillfully deploying the innovative toolset that TAP provides to fill the capital gap needed to improve trade through private sector growth, and in particular to support gender equality and gender equality. climate change mitigation. These are powerful and relevant motivations given current supply chains and food security prospects.”

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Admir Imami, Head of Trade Finance and Supply Chain, British International Investment, said: “Small traders are essential to any supply chain, yet they are often excluded from accessing formal trade finance products such as letter of credit, bank guarantee, receivables finance or structured trade finance. . This new trade access platform, which BII is launching with INOKS Capital as its first partner, is an innovative financing program and solution that will enable SMEs and trade intermediaries in Africa to access much-needed working capital. . The platform will also support women-owned and led SMEs while supporting climate-positive trade, which will help boost productivity in local and vital value chains, increase food security and accelerate sustainable economic growth. and inclusive.

“This partnership exemplifies BII’s commitment to deploying patient and flexible capital to meet market challenges, and I am proud of the BII team’s dedicated efforts to structure this innovative program that will help address critical business and maintain the circulation of trade across the continent,” he added.

What you should know

  • British International Investment (BII) is the UK’s development finance institution and impact investor. BII is a trusted investment partner for businesses in Africa, Asia and the Caribbean. It invests between £1.5 billion and £2 billion each year to support the UK Government’s Clean Green Initiative and to create productive, sustainable and inclusive economies in our markets.
  • British International Investment plays a key role in the UK Government’s broader plans to mobilize up to £8bn a year of public and private sector investment in international projects by 2025.
  • INOKS Capital is an asset manager based in Switzerland and subject to prudential regulation. Since 2006, more than $6 billion has been deployed in customized financing solutions for companies primarily active in the agriculture and food sectors, all in accordance with defined sustainability and impact criteria.