Financial services firm Standard Chartered and UK development finance institution British International Investment (BII) have signed a $350-million risk participation agreement for the trade finance needs of small and medium-sized enterprises and corporates across Africa and South Asia.

The facility is aimed at boosting economic growth in these regions.

Since the initial agreement in 2013, Standard Chartered and BII have enabled more than $10-billion in trade volumes in more than ten countries across Africa and South Asia, including Kenya, Nigeria, Tanzania, Bangladesh, Nepal and Pakistan.

In the past year, an estimated $450-million of trade has been supported through this facility.

The renewed facility will cover an expanded number of dynamic markets and provide much needed support in trade and economic growth in Africa and South Asia by further enabling trade finance access and liquidity across Standard Chartered’s extensive global network.

The facility will support various sectors, including food, agriculture, healthcare, industrials, metals infrastructure, electrical, electronics, technology, telecom and mobility, among others, the organisations say.

Further, the facility supports the UN Sustainable Development Goals (SDGs) of Decent Work & Economic Growth, or SDG 8, Industry Innovation & infrastructure, or SDG 9, and Responsible Consumption & Production, which is SDG 12.

“This is an important partnership that will support SMEs and corporates to grow and deliver critical goods and services. Trade plays an important role in economic transformation. This risk-sharing facility demonstrates how BII can work with financial institutions to support our shared development objectives,” says UK Development Minister Anneliese Dodds.

“By enabling more than $10-billion in trade volumes, the long-standing trade finance facility continues to empower businesses and facilitate the vital flow of essential goods and services including food and healthcare.

“This supports economic growth and creates new opportunities in these regions, and is also a step closer to narrowing the global trade finance gap,” says BII CEO Nick O’Donohoe.

“We play a vital role in enhancing access to the capital and liquidity that is essential for global trade. This strategic agreement will provide significant support to businesses with high potential but constrained access to finance,” says Standard Chartered UK CEO and Banking & Coverage head Saif Malik.

“The agreement also aligns to [Standard Chartered's] vision of the role that banking and finance can play in supporting the growth ambitions of corporations that innovate for the future by connecting the world’s most dynamic markets in trade, investment and capital flows,” he says.