The African Development Bank (AfDB) has signed a US$7.5 million trade finance guarantee agreement with Bank of Africa Tanzania to boost support for local businesses and SME importers.
Under the new facility, AfDB will offer guarantees covering up to 100% of non-payment risks for letters of credit and other trade finance instruments issued by Bank of Africa Tanzania. The initiative is aimed at helping local companies access regional and international markets more easily.
Patricia Laverley, country manager for Tanzania at Bank of Africa, said the guarantee will particularly benefit key sectors such as trade, agriculture, manufacturing, and energy. “This facility will support trade by enabling Bank of Africa Tanzania to play a more strategic role in the regional and international market,” she stated.
Deputy managing director Hamza Cherkaoui noted that the partnership will strengthen the bank’s ability to deliver trade finance solutions, expand its confirmation network, and connect clients with leading confirming banks.
According to AfDB, the facility supports its broader goals of promoting regional integration, boosting food security, and driving industrialization across Africa. It also aligns with the objectives of the African Continental Free Trade Area (AfCFTA), aiming to enhance intra-African trade.
AfDB added that the guarantee facility is expected to contribute to Tanzania’s Vision 2025 plan, which focuses on building economic resilience, as well as its Country Strategy 2021–2025, which prioritizes job creation.