The African Development Bank Group and Exim Bank Tanzania Limited have signed on 28 September a $10 million trade finance transaction guarantee facility to boost trade finance activities in Tanzania.
The Bank Group will provide a guarantee of up to 100% to confirming banks against non-payment risks arising from letters of credit and similar trade finance instruments issued by Exim Bank Tanzania. The facility will support small and medium-sized enterprises (SMEs) and local corporates engaged in the import sector. The facility will advance efforts to bolster intra-Africa trade, contributing directly to the objectives of the African Continental Free Trade Area (AfCFTA).
The African Development Bank's Transaction Guarantee is an unfunded instrument that provides up to 100% non-payment risk cover to Confirming Banks for trade finance transactions of eligible Africa-based Issuing Banks.
Speaking at a signing event held in Dar es Salaam, the Bank Group's Country Manager for Tanzania, Mary Monyau, stressed the importance of the facility in addressing Tanzania's trade finance needs, and reducing reliance on trade, agriculture, manufacturing, and energy imports.
"This facility is in line with the African Development Bank's Cardinal Points on managing risk and mobilising capital, unlocking SME financing, as well as enhancing Africa's regional integration and elevating its role in global markets," she said. For Tanzania, it supports the implementation of Tanzania Vision 2050, which seeks to transform the country into an inclusive, climate-resilient, high-income, globally competitive economy by 2050.
Exim Bank Tanzania's Chief Financial Officer Shani Kinswaga said,
"This partnership represents more than a financing arrangement; it strengthens the financial infrastructure required to support Tanzania's growing trade ambitions. For Exim Bank, it provides an important opportunity to deepen our trade finance business while supporting Tanzanian businesses to participate more confidently in regional and international markets."
He added that the value of the partnership between the two entities lies in the additional capacity and risk support it provides, enabling Exim Bank to pursue viable trade opportunities with greater confidence while maintaining disciplined risk management and sound credit standards.
The signing of the facility agreement is expected to benefit Tanzania's private sector and also advances the Bank Group's Tanzania Country Strategy Paper 2026-2031, which prioritises enhancing the private sector business environment for job creation.
