The chief executive of United Bank for Africa’s UK subsidiary has outlined a strategy to position the lender at the center of efforts to reduce Africa’s estimated $100 billion trade finance gap, as shifting global supply chains and rising intra-African commerce reshape capital flows.
Loknath Mishra, recently appointed CEO of UBA UK, said the bank plans to leverage its parent group’s presence across 20 African countries and its London platform to expand hard currency liquidity, structured trade finance and correspondent banking relationships.
Speaking in an interview on Global Business Report on Arise TV, Mishra said Africa’s trade volumes are expected to grow faster than many other regions, even as international banks have scaled back exposure to parts of the continent, widening the funding shortfall.
“The global trade order is changing, supply chains are being rewritten, and Africa is increasingly becoming a reliable and strategic partner,” Mishra said. “UBA UK plays a critical role in providing hard currency liquidity, structured trade finance and settlement services through London’s financial infrastructure.”
Africa’s trade finance gap, estimated at more than $100 billion annually by development finance institutions, reflects unmet demand for letters of credit, guarantees and other instruments required to facilitate cross-border transactions. Small and medium-sized enterprises are disproportionately affected, often lacking access to affordable dollar funding and correspondent banking channels.
Mishra said UBA’s network allows it to connect buyers and sellers across borders while using its UK subsidiary to structure international transactions and settle foreign currency obligations efficiently. London remains a key clearing hub for global trade flows, particularly in dollar and euro markets.
He identified the African Continental Free Trade Area as a structural catalyst for growth. The agreement, covering 54 countries and an estimated combined gross domestic product of about $3 trillion, is designed to lower tariffs and harmonize trade rules across the continent.
Intra-African trade currently accounts for roughly 12 percent to 15 percent of total African trade, compared with about 60 percent in Europe, according to regional estimates. Mishra said that gap signals significant headroom for expansion as African economies shift from exporting raw materials toward processed goods and manufactured products.
“As Africa pivots toward value-added production, demand for more sophisticated trade finance solutions will increase,” he said, adding that UBA’s international subsidiaries are positioned to support that transition.
UBA Group Managing Director and Chief Executive Officer Oliver Alawuba said Mishra’s appointment underscores the bank’s ambition to strengthen its international franchise and deepen Africa’s integration into global markets.
Mishra said his performance metrics would extend beyond balance sheet growth. “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,” he said.
United Bank for Africa employs about 25,000 people and serves more than 45 million customers worldwide. In addition to operations across 20 African countries, the group maintains a presence in the United Kingdom, the United States, France and the United Arab Emirates, offering retail, commercial and institutional banking services.
For African exporters and importers, access to reliable trade finance remains a critical constraint on growth. Banks able to combine on-the-ground presence with global settlement capabilities are likely to play an outsized role as the continent seeks to capture a larger share of global trade flows.