Abidjan, September 26, 2025 – The African Development Bank Group (AfDB) has approved a $10 million trade finance guarantee facility for Exim Bank Tanzania Limited to unlock trade deals and expand access to financing for small and medium-sized enterprises (SMEs) and corporates.
The facility will provide up to 100 percent guarantees to international confirming banks against the risk of non-payment, enabling Exim to secure more trade finance lines and reduce reliance on foreign exchange collateral.
AfDB said the initiative is expected to support up to $60 million in trade transactions over the next three years, strengthening Tanzania’s private sector and boosting 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, AfDB’s Head of Trade Finance.
SMEs, which represent more than 90 percent of Tanzanian businesses and contribute about a third of GDP, face a $1.3 billion annual trade finance gap. The facility is expected to ease this challenge while supporting key sectors such as agriculture, health, energy, and manufacturing through the import of fertilizers, pharmaceuticals, and farming equipment, as well as the export of commodities including coffee, cashew, and cotton.
“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,” said Jaffari Matundu, CEO of Exim Bank Tanzania.
Exim Bank, Tanzania’s fourth-largest bank with operations in Uganda, Djibouti, and Comoros, will implement the facility in collaboration with participating confirming banks.
The project aligns with AfDB’s 2024–2033 Ten-Year Strategy, the Tanzania Country Strategy Paper (2021–2025), and the government’s Vision 2025, which prioritizes a competitive economy driven by improved private sector access to finance.
“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.
