Access Bank Plc is providing commercial financing of 60 million dollars to five African countries, including Mozambique. This action aims to strengthen the import and export capacity of local companies and also to bridge the deficit in the supply of foreign currency.

The amount, made available by British International Investment (BII) - a UK development finance institution - should strengthen financing conditions for the most fragile economies. The BII estimates that the loan program could boost the volume of African trade by 90 million dollars.

In addition to strengthening the ongoing relationship between British International Investment and one of Africa's largest commercial banks, the agreement to lend to Access Banc Plc facilitates the provision of systemic liquidity during a period characterized by a difficult macroeconomic environment.

The World Trade Organization estimates that between 80% and 90% of world trade depends on the availability of trade credit. Before the Covid-19 pandemic, this financing gap amounted to 82 billion dollars in Africa and has been increasing.

BII's financing, through Access Bank Plc, responds to the challenge associated with higher inflation and an increase in the cost of capital, which exert negative pressure on the performance of the currency in the program's target markets, namely Mozambique, the Democratic Republic of Congo, Rwanda, Sierra Leone and Zambia.

On the other hand, recognizing the positive effects of robust trade flows on economies and livelihoods, Access Bank aims to provide 15% of trade finance in Africa by increasing the trade portfolios of its subsidiaries.

By specifically targeting import-dependent economies - many of which will be making their first contact with the BII's trade loan program - the institution is capitalizing on opportunities opening up under the African Continental Free Trade Agreement.

For the managing director of Access Bank Mozambique, Marco Abalroado, "this partnership represents a significant milestone for the Bank and further strengthens our commitment to boosting economic growth and trade on the African continent".

"We are committed to using these resources strategically to boost key sectors and promote the sustainable development of our communities," he said, also underlining the opportunities open to traders and women.

"We look forward to implementing the promising opportunities that this funding will bring. We will remain committed to offering innovative financial solutions with a positive impact on commerce in general, and also on female empowerment," said Marco Abalroado.

Acces Bank believes that the financing channeled to companies in the construction, manufacturing and FMCG sectors will directly contribute to the materialization of the United Nations' Sustainable Development Goals (SDGs).

On the other hand, financing should improve the livelihoods and job retention of importers and exporters with limited access to commercial loans in foreign currency.