ABIDJAN, Ivory Coast, September 27, 2025 — The African Development Bank Group (AfDB) has approved a $10 million trade finance transaction guarantee facility for Exim Bank Tanzania Limited, aimed at unlocking and de-risking trade deals for small and medium-sized enterprises (SMEs) and corporates.
The facility will provide up to 100% guarantees to international confirming banks against risks of non-payment. This mechanism will allow Exim Bank to release additional trade finance lines, expand access to essential imports, and strengthen Tanzania’s private sector.
According to the AfDB, the initiative is expected to support up to $60 million in trade transactions over the next three years. By reducing Exim Bank’s dependence on scarce foreign exchange collateral typically required by international banks, the program will free resources for more productive lending to local businesses engaged in intra-African and international trade.
“Trade finance is essential for Africa’s economic development, facilitating both domestic and international trade, boosting economic growth and promoting regional integration,” said Lamin Drammeh, Head of Trade Finance at the AfDB.
SMEs constitute over 90% of businesses in Tanzania and contribute roughly a third of GDP. Yet, a $1.3 billion annual trade finance gap continues to restrict their growth.
“SMEs and corporates are vital engines of industrialization, innovation, and job creation. This facility will remove barriers to cross-border trade while opening doors for new partnerships with global and regional financial institutions,” said Jaffari Matundu, Chief Executive Officer of Exim Bank Tanzania Limited.
Key beneficiaries
Sectors such as agriculture, health, energy, and manufacturing stand to benefit significantly. The facility will support imports of fertilizer, pharmaceuticals, and farming equipment, while also facilitating the export of Tanzanian commodities including coffee, cashew, and cotton.
Exim Bank, Tanzania’s fourth largest financial institution, operates across Uganda, Djibouti, and Comoros. The guarantee facility will be implemented through agreements with Exim and participating confirming banks.
Strategic alignment
This project is aligned with the African Development Bank’s 2024-2033 Ten-Year Strategy, Tanzania’s 2021-2025 Country Strategy Paper, and the government’s Tanzania Vision 2025, which emphasize improving private sector access to finance and strengthening competitiveness.
“This partnership with Exim Bank Tanzania demonstrates the African Development Bank Group’s commitment to reducing Tanzania’s trade finance gap, empowering local businesses to compete globally and create more jobs across the country,” Drammeh added.
Sources & Contacts
- Source: African Development Bank Group (AfDB)
- Media Contact: Christin Roby, Communication and External Relations Department – media@afdb.org
- Distributed by: APO Group on behalf of AfDB
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