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Message: [QUOTE="Nehanda, post: 26940, member: 2262"] British International Investment has partnered with Ghana International Bank through a $50 million agreement to strengthen trade across seven African nations. The funds will help businesses access loans from local banks in The Gambia, Sierra Leone, Liberia, Benin, DR Congo, Rwanda, and Tanzania. This partnership addresses a critical need in regions where global banks hesitate to operate because they view these markets as high-risk. BII and GHIB officials shared these details with Semafor recently. Kwabena Asante-Poku, who leads BII operations in Ghana, explained that their goal is to make the biggest impact possible. The partnership aims to provide local companies with money to buy necessary goods and equipment for business growth and increased trade activity. GHIB Chief Executive Dean Adansi added that boosting trade creates jobs and drives economic progress through what he called a multiplier effect throughout these economies. The International Trade and Forfaiting Association reports Africa faces a trade finance gap reaching $120 billion. This number shows the difference between what businesses need versus what financial institutions currently provide across the continent. Despite being based in London, GHIB remains under Ghanaian financial ownership and management, giving it unique insight into African markets. Adansi expressed concern about the risk premiums attached to African business ventures. He pointed out that expected cuts from the Development Finance Corporation under President Trump might significantly hurt African economies. He emphasized that local capital reserves cannot fully support emerging commercial opportunities, making development finance institutions crucial partners for regional banks and businesses. BII representatives explained that GHIB plans to collaborate with approximately 25 local banks across these target countries during the three-year program period. Small and medium-sized businesses suffer most from Africa's trade deficit since they struggle to access the credit needed for international trade. Several major international banks have pulled out of African markets recently, citing limited profits, elevated risks, and economic challenges. Standard Chartered Bank left five African countries in 2022, and Barclays has reduced its African presence since 2017. [/QUOTE]

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