The new facility will provide systemic liquidity and help Citi grow its supply chain finance product across Africa.
The facility will enable Citi to increase supply chain finance facilities to existing customers and offer them to new customers.
These facilities bring much-needed working capital to supply chains as they allow suppliers to Citi’s corporate clients to be paid early and at a beneficial rate of finance.
Amplified capital support will enable businesses to better manage cash flow and onboard new suppliers to the supply chain, ensuring the continued flow of goods and services.
This will help expand the scope of local businesses and ensure productive and inclusive economic opportunities for diverse groups and communities.
Under the facility, BII will act as a guarantor for supply chain finance facilities provided by Citi, mitigating the financial risks involved.
BII and Citi have agreed to set impact criteria to ensure that flexible capital is being directed toward underserved groups and BBBEE enterprises for whom access to capital can be limited.
The increased working capital will promote financial inclusion, support SMEs, and improve the resilience of diverse suppliers and buyers, which will help strengthen Africa’s supply chain and keep trade flowing across the continent.
“BII’s Trade and Supply Chain Finance (TSCF) program has supported US$20.9 billion of trade across Africa and South Asia through partnerships with regional, international financial intermediaries,” said Admir Imami Director, Head of Trade & Supply Chain Finance, BII.
“Our partnership with Citi presents an opportunity to help catalyze greater commercial capital to African businesses, bolstering trade and supply chain activities throughout the continent.”
This agreement demonstrates the potential for flexible British finance combined with strategic partnerships to help reinforce Africa’s supply chains.
The investment aligns with SDG 8 – Decent Work and Economic Growth and SDG 17 – Partnerships for the Goals.