ABIDJAN, Ivory Coast, September 27, 2025 – The African Development Bank Group (AfDB) has approved a $10 million facility under the AfDB trade finance guarantee for Exim Bank Tanzania to expand access to cross-border trade and support the private sector.
The facility, which provides up to 100 percent guarantees against risks of non-payment, will empower international confirming banks to unlock trade finance lines for Exim.
This move is designed to ease liquidity constraints, boost Tanzania’s import and export capacity, and strengthen opportunities for small and medium-sized enterprises (SMEs) and local corporates.
Over the next three years, the facility is expected to support up to $60 million worth of trade transactions, making it one of the most impactful interventions to reduce the country’s $1.3 billion trade finance gap.
Boosting Private Sector Competitiveness
The AfDB trade finance guarantee for Exim Bank Tanzania is a game-changer for SMEs, which make up more than 90% of businesses in the country and contribute nearly one-third of GDP.
By reducing the dependence on foreign exchange collateral, the facility frees up resources that can be redirected toward productive lending.
According to Lamin Drammeh, AfDB’s Head of Trade Finance, this initiative aligns with the Bank’s mission to drive regional integration and economic growth.
“Trade finance is essential for Africa’s economic development. It facilitates both domestic and international trade while removing barriers that stifle business competitiveness,” Drammeh said.
Supporting Key Sectors of the Economy
The AfDB facility will also target strategic industries such as agriculture, health, energy, and manufacturing.
By supporting the import of critical goods like fertilizers, pharmaceuticals, and farming equipment, and enabling the export of Tanzania’s commodities—coffee, cashew, and cotton—the AfDB trade finance guarantee for Exim Bank Tanzania will help stabilize supply chains and foster industrial growth.
Jaffari Matundu, CEO of Exim Bank Tanzania, emphasized the catalytic role of the partnership:
“SMEs and corporates are vital engines of industrialization, innovation, and job creation. This facility will remove barriers to cross-border trade while opening new opportunities with global and regional financial institutions.”
Expanding Exim Bank’s Regional Footprint
Exim Bank Tanzania, the country’s fourth largest lender, operates in Uganda, Djibouti, and Comoros. With this facility, the bank will strengthen its role as a regional player, improving its ability to facilitate trade flows across East Africa and beyond.
The guarantee will be implemented through agreements between Exim Bank Tanzania and participating confirming banks.
By reducing the perception of risk among international lenders, the AfDB aims to expand trade lines and encourage more global partnerships.
Alignment with National and Regional Priorities
The AfDB trade finance guarantee for Exim Bank Tanzania aligns with Tanzania’s Vision 2025, which emphasizes building a strong and competitive economy.
It also supports AfDB’s Ten-Year Strategy (2024–2033) and the 2021–2025 Tanzania Country Strategy Paper, both of which prioritize private sector development and financial inclusion.
“This partnership with Exim Bank Tanzania demonstrates the AfDB’s commitment to reducing the country’s trade finance gap and empowering local businesses to compete globally,” Drammeh added.
Driving Inclusive Economic Growth
With AfDB’s intervention, Tanzania’s private sector is poised to play a stronger role in Africa’s trade integration agenda.
By unlocking financing for SMEs, the facility will foster innovation, create jobs, and enhance resilience in key industries.
The AfDB trade finance guarantee for Exim Bank Tanzania stands as a critical milestone in strengthening Africa’s trade ecosystem, bridging financing gaps, and positioning Tanzanian businesses as competitive players in regional and global markets.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
SOURCE: African Development Bank Group (AfDB)
About The Author
