Deutsche Bank and BII Launch $150M Trade Finance Lifeline for Africa

Deutsche Bank has teamed up with British International Investment (BII) to launch a $150 million risk-sharing programme. The initiative targets underserved African markets struggling with trade finance shortages. This marks the first formal partnership between the two institutions.

The agreement uses an unfunded risk participation framework. Under this model, BII will act as a financial backstop for Deutsche Bank's local partners, enabling them to offer short-term trade financing. The move comes as many international banks have scaled back operations in Africa since 2021, particularly in West Africa and fragile states.

Major exits included HSBC leaving several countries, Barclays reducing its presence, and Standard Chartered cutting back. Nigeria, Ghana, and sanctioned nations have been hardest hit due to rising compliance costs and security risks. The African Development Bank estimates a $100 billion annual trade finance gap across the continent, with smaller markets like Zambia, Ethiopia, and Rwanda facing chronic shortages.

Meanwhile, Deutsche Bank has appointed Gerald Podobnik as co-head of its global corporate bank. He replaces Ole Matthiessen and will lead the division alongside Michael Diederich.

The $150 million programme aims to ease liquidity shortages in smaller African markets. These challenges have worsened since the withdrawal of major international banks. Deutsche Bank's stock currently trades at €25.80, around 14% below its 200-day moving average.