UBA Unveils Strategy to Bridge Africa’s $100bn Trade Finance Gap

Kayode Tokede  

The Chief Executive Officer of UBA UK, Loknath Mishra, has unveiled a strategy to position the bank to be 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.

Mishra who spoke in an interview on Arise TV’s Global Business Report yesterday, outlined a 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

“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.

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.

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.