UBA UK mulls $100 billion trade finance for Africa
The Chief Executive Officer of UBA UK, Loknath Mishra, has unveiled a strategy to position the bank at the forefront of efforts to bridge Africa’s estimated $100 billion trade finance
The Chief Executive Officer of UBA UK, Loknath Mishra, has unveiled a strategy to position the bank at the forefront of efforts to bridge Africa’s estimated $100 billion trade finance gap and strengthen cross-border trade flows between the continent and global markets.
The newly appointed CEO, who spoke in an interview on a Tv, outlined a clear vision to leverage UBA’s Pan-African footprint and international banking platform to unlock capital, enhance correspondent banking relationships, and support African corporates and SMEs in accessing global markets.
He explained that since African trade is projected to grow faster than many other regions, the continent faces a trade finance gap estimated at over $100billion, further widened by the withdrawal of several international banks from African markets.
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“The global trade order is changing, supply chains are being rewritten, and Africa is increasingly becoming a reliable and strategic partner. UBA has a significant role to play in ensuring Africa is connected to the globe, and UBA UK, plays a critical role in providing hard-currency liquidity, structured trade finance, and settlement services through London’s financial infrastructure,” Mishra said.
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He emphasised that UBA’s presence across 20 African countries enables the Group to connect buyers and sellers seamlessly across borders while leveraging UBA UK for efficient foreign currency settlement and international trade structuring.
Mishra also indicated plans for the UBA UK to leverage the African Continental Free Trade Area (AfCFTA) and South-South Trade Growth, adding that a major driver of opportunity, is the transformative impact of AfCFTA, which is one of the largest trade agreements globally, covering 54 countries, 1.3 billion people, and a combined GDP of approximately $3 trillion.
“Intra-African trade currently stands at between 12per cent and 15per cent, compared to roughly 60per cent in Europe. That shows the enormous runway for growth, and as Africa pivots from raw material exports toward processed goods and manufactured products, the demand for sophisticated trade finance solutions will increase - an area where UBA’s international subsidiaries will play a vital role,” he noted.
UBA’s Group Managing Director/Chief Executive Officer, Oliver Alawuba, while announcing Mishra’s as the new UBA UK CEO, has said the appointment signals UBA Group’s continued commitment towards strengthening its international banking franchise and expanding Africa’s integration into the global economy.
In line with this, Mishra took time to outline his vision for UBA UK that extends beyond balance sheet metrics, adding: “I don’t measure success by a single number. Success is when African corporates and banks see UBA UK as the first bank to approach for global business - and when international investors think of UBA when they think of Africa.”
