Question to the Foreign, Commonwealth & Development Office:

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, whether any of British International Investment’s $100 million commitment to Afreximbank through a risk sharing guarantee programme made in 2018 has been used to support Afreximbank loans to the Reserve Bank of Malawi, the government of Malawi or any other Malawi state-owned bodies.

In 2018, British International Investment (BII) made a commitment of $100 million to Afreximbank in the form of a risk sharing guarantee programme to promote trade across Africa. The facility aims to provide working capital to medium and large businesses in sub-Saharan Africa countries by enabling banks to increase their risk appetite.

BII's support of Afreximbank has not involved any loans or credit facilities to the Reserve Bank of Malawi or Government of Malawi or Malawi state-owned bodies.

Trade finance - typically provided by banks and other financial institutions - is crucial to the success of a developing economy. Through services such as letters of credit for importers and guarantees for exporters, trade finance facilitates transactions, allowing businesses in developing countries to buy and sell goods more easily. BII's partnerships with confirming banks such as Afreximbank mean more trade finance products can be offered to businesses in Africa and South Asia.