LONDON (Reuters). -British International Investments (BII), and U.S. banks Citigroup Inc (NYSE: ) has signed a risk-sharing agreement of $100 million that aims to increase lending to small business in Africa up to fourfold, BII stated in a statement.

Citi and BII, Britain’s development finance institution, have made a partnership to increase their supply-chain lending to the continent. The agreement aims to target Small and Medium Enterprises, or SMEs, that often struggle to obtain financing.

In a Tuesday statement, BII stated that the new Master Guarantee agreement would increase Citi’s Africa supply chain financing volumes by as much as $400 million.

It stated that BII would act as a guarantor under the facility for Citi supply chain financing facilities, mitigating any risk.

Both parties share the risk 50/50, which means that BII would pay half of any losses if a small company defaults on a Citi loan.

This partnership aims to provide capital in local currency to market where lending to SMEs can be risky due to uncertain economic conditions and fluctuating currencies.

BII stated that the goal was to promote economic inclusion by targeting women-owned, Broad-based Black Economic Empowerment companies, and promoting productivity.

The programme will support SME sellers who deal with buyers, and reduce the time it takes to receive their payments.

A spokesperson stated that SME suppliers can receive discounts on their receivables on delivery day, rather than on invoice due dates, if they are part Citi’s supply-chain finance.

“This allows us to speed up the working capital of the SME suppliers and without needing to borrow more funding or wait.