AfDB and GHIB Join Forces to Boost Trade Finance in Africa

The partnership brings GHIB, a UK-based bank with strong African ties, into the African Development Bank's network of international confirming banks.

The African Development Bank Group (AfDB) has signed a new agreement with Ghana International Bank (GHIB) for increasing access to trade finance for businesses across Africa and helping address one of the continent's biggest barriers to economic growth.

The partnership brings GHIB, a UK-based bank with strong African ties, into the African Development Bank's network of international confirming banks. Through the arrangement, the Bank Group will provide guarantees covering up to 100 percent of the non-payment risk on eligible trade finance transactions involving approved African banks.

The agreement is expected to make it easier for African financial institutions to support importers and exporters, particularly in markets where access to international credit remains limited. By reducing risk for participating banks, the initiative aims to unlock more trade opportunities and strengthen commercial links within Africa and with global markets.

Closing a Multi-Billion-Dollar Financing Gap

Access to trade finance remains a major challenge for businesses across the continent. According to the African Development Bank's 2025 Trade Finance Report, Africa faced an estimated trade finance gap of between $74 billion and $92 billion in 2024. Small and medium-sized enterprises (SMEs) have been among the hardest hit. Many businesses struggle to secure the financial backing needed to import goods, purchase raw materials, or expand into new export markets, limiting growth opportunities and job creation.

The new partnership is expected to help narrow that gap by increasing the capacity of African banks to support trade transactions. Officials believe this will be particularly valuable for lower-income countries and transition economies where financing options are often more constrained.

Supporting Intra-African Trade and Economic Growth

The agreement also comes as countries across the continent continue implementing the African Continental Free Trade Area (AfCFTA), one of the world's largest free trade initiatives. AfDB officials say expanding trade finance is essential if African businesses are to fully benefit from the opportunities created by the agreement. Increased access to financing can help companies participate more actively in regional supply chains, expand exports, and build stronger commercial partnerships across borders.

The Bank highlighted that countries such as Sierra Leone, Liberia, Guinea, and The Gambia could benefit from enhanced trade finance support under the arrangement. GHIB Chief Executive Officer Ian Greenstreet described the agreement as an important milestone for the bank and its clients. He said the partnership strengthens the institution's ability to support businesses involved in international trade while reinforcing its role as a bridge between African markets and global capital.

With trade increasingly viewed as a key driver of economic development, both institutions believe the collaboration will help businesses access financing more easily, encourage investment, and support broader economic growth across the continent.