The African Development Bank has approved a USD 10 million trade finance guarantee for Exim Bank Tanzania to support up to USD 60 million in trade transactions. The facility will enhance access to finance for SMEs and local corporates in key sectors such as agriculture, health, and manufacturing.
Exim Bank is Tanzania’s fourth-largest bank and operates in Uganda, Djibouti, and Comoros. The facility will provide up to 100% guarantees to international confirming banks against the risk of non-payment, enabling Exim Bank to expand access to trade finance for local businesses.
It is expected to support up to USD 60 million in trade transactions over three years, reducing the bank’s reliance on foreign exchange collateral and freeing up resources for lending to small and medium-sized enterprises (SMEs) and local corporates engaged in intra-African and international trade. AfDB’s Head of Trade Finance, Lamin Drammeh, said the facility aligns with the Bank’s broader goal to promote trade and regional integration. “Trade finance is essential for Africa’s economic development, facilitating both domestic and international trade, boosting economic growth and promoting regional integration,” he noted. Exim Bank Tanzania Chief Executive Officer, Jaffari Matundu, said the partnership will strengthen the private sector and enhance Tanzania’s competitiveness. “SMEs and corporates are vital engines of industrialization, innovation, and job creation, and this facility will remove barriers to cross-border trade while opening doors for new partnerships with global and regional financial institutions,” Matundu said.
Read more at: https://www.tanzaniainvest.com/finance/banking/afdb-trade-finance-guarantee-exim-bank-support-smes
