The African Development Bank Group has signed a confirming bank agreement with The Mauritius Commercial Bank Limited (MCB) under its Trade Finance Transaction Guarantee Instrument, to help bridge the trade finance gap on the continent. According to the Bank Group's 2025 Trade Finance Report, unmet demand for trade finance in Africa stood between $74 billion and $92 billion in 2024, with small and medium-sized enterprises being the hardest hit.
Through this unfunded instrument, the African Development Bank Group collaborates with local African issuing banks and international confirming banks to support cross-border trade flows, especially in markets where access to credit lines is limited, helping to expand trade within Africa as well as between Africa and the rest of the world. The Bank Group will provide transaction-by-transaction guarantees covering up to 100% of the non-payment risk assumed by MCB on eligible trade finance transactions originated by Bank Group-approved African issuing banks.
"This is a strategic partnership. It will allow us to leverage our AAA-rated guarantee and provide Mauritius Commercial Bank the confidence to maintain and expand its relationships with local African banks," said African Development Bank Head of Trade Finance, Lamin Drammeh. "The facility will ultimately support SMEs who are the backbone of African economies but face the highest rejection rates for trade finance," he added.
MCB CEO, Thierry Hebraud said: "We are pleased to join the African Development Bank's Trade Finance Guarantee Programme as a Confirming Bank. This collaboration underscores our shared ambition to foster trade and drive sustainable economic growth across Africa. It further reinforces our Trade Finance strategy by expanding our capacity to provide trade finance solutions to clients and banking partners, thereby enabling smoother, more secure cross-border trade across the continent."
About MCB
Anchored on more than 187 years of accomplishments, The Mauritius Commercial Bank Limited ("MCB") is the leading bank in Mauritius and the main entity of MCB Group. Over the years, MCB's diversification strategy has enabled its positioning as an increasingly prominent financial services player in the region. MCB is also a regional bank with a widening international footprint spanning to Madagascar, Maldives and Seychelles through dedicated subsidiaries, as well as Réunion, Mayotte, France, South Africa, Kenya, Dubai and Nigeria via its associates and representative offices. The Group also has a strong commitment towards having a positive economic, social, environmental and cultural impact in the long run.
Website: www.mcbgroup.com
