Deutsche Bank and BII launch $150M programme to revive African trade finance
Deutsche Bank has launched a new $150 million risk-sharing programme with British International Investment (BII) to boost trade finance in underserved African markets. The move comes as many major international banks have scaled back their operations across the continent in recent years.
This is the first formal partnership between the two institutions, designed to tackle long-standing financial gaps in Africa's trade sector.
The programme will operate under an unfunded risk participation framework. BII will act as a financial backstop, supporting Deutsche Bank's local partner institutions in facilitating trade transactions. The goal is to reduce reliance on cash-based import and supply chain practices, which often strain working capital and limit business growth.
The African Development Bank estimates a $100 billion annual trade finance shortfall in the region. Smaller economies like Zambia, Ethiopia, and Rwanda face particularly severe undersupply, while larger markets such as South Africa, Nigeria, Kenya, and Ghana have also seen reduced banking services. Over the past few years, at least 10 major international banks—including Standard Chartered, Barclays, BNP Paribas, Société Générale, and Citigroup—have either cut back or exited African operations entirely.
Within Deutsche Bank, leadership changes have also taken place. Gerald Podobnik was recently appointed co-head of the global corporate bank, replacing Ole Matthiessen. He will now share responsibility for the division with Michael Diederich.
The initiative aims to strengthen trade finance access in markets where international banks have retreated. Deutsche Bank's stock currently trades at €25.80, around 14% below its 200-day moving average. The programme's success could influence future investment decisions in Africa's financial sector.
