Deutsche Bank and BII launch $150M programme to ease Africa's trade finance crisis
Deutsche Bank has teamed up with British International Investment (BII) to tackle Africa's growing trade finance shortage. The new $150 million risk-sharing programme aims to support businesses in underserved markets across the continent. Meanwhile, the bank has also reshuffled its leadership in corporate banking with two new co-heads at the helm.
The partnership marks the first formal collaboration between Deutsche Bank and BII. Under the agreement, BII will act as a financial backstop for local banks working with Deutsche Bank, reducing risks in trade financing. The programme will focus on countries like Zambia, Ethiopia and Rwanda, where access to funding remains limited.
The move comes as Africa faces a widening trade finance gap, estimated at $100 billion annually by the African Development Bank. Many businesses now rely on cash transactions, which strain working capital and slow expansion. This challenge has worsened as at least eight major international banks—including Standard Chartered, HSBC, Citibank and Société Générale—have scaled back or exited African markets over the past five years, particularly in Nigeria, Kenya, Ghana and South Africa. Alongside this initiative, Deutsche Bank has appointed Gerald Podobnik and Michael Diederich as co-heads of its global corporate bank. Podobnik succeeds Ole Matthiessen, while Diederich joins from within the bank's leadership team. The changes arrive as Deutsche Bank's stock trades around €25.80, roughly 14% below its 200-day average.
The $150 million programme seeks to ease financial pressures on African traders by sharing risks with local banks. With BII's backing, Deutsche Bank aims to expand trade financing in markets where international lenders have retreated. The bank's leadership adjustments also signal a renewed focus on corporate banking growth.
