The African Development Bank (AfDB) and Bank of Africa Tanzania (BOAT) have signed a $7.5 million trade finance facility aimed at boosting access to finance for businesses engaged in imports. The agreement was signed on 10 March 2025 in Dar es Salaam.
The facility is structured as a transaction guarantee, with AfDB offering up to 100% guarantee coverage to confirming banks. This will protect them against non-payment risks associated with trade finance instruments such as letters of credit issued by BOAT.
Read also: African oil giants advance IPO plans to attract global investment
Focus on trade, agriculture, manufacturing, and energy
The facility is expected to benefit small and medium-sized enterprises (SMEs) and local corporates, especially those operating in sectors critical to Tanzania’s economy, including trade, agriculture, manufacturing, and energy.
Speaking at the signing event, Patricia Laverley, the Bank’s Country Manager for Tanzania, noted the importance of the initiative in addressing the country’s trade finance needs.
“This facility will support trade by enabling BOAT to play a more strategic role in the regional and international market,” she said.
Read also: Nigeria, Angola and Ghana back Africa Energy Bank with $249m in capital contributions
Support for AfCFTA and regional integration
The transaction aligns with AfDB’s broader objectives, including promoting regional integration under the African Continental Free Trade Area (AfCFTA). It also contributes to increased food security and industrialisation across the continent.
BOAT Deputy Managing Director, Hamza Cherkaoui, described the partnership as an important step toward expanding trade finance access in Tanzania and beyond.
“This partnership strengthens our ability to support businesses across various sectors by providing seamless trade finance solutions, expanding our confirmation network, and enabling access to top-tier confirming banks,” he said.
Read also: iSON Xperiences appoints Ricardo Langwieder as Chief Sales Officer
Part of Tanzania’s development strategy
The agreement supports Tanzania’s Country Strategy Paper 2021–2025, which aims to enhance the business environment for private sector-led job creation. It is also aligned with Tanzania’s national development agenda, Vision 2025, which focuses on building a competitive and resilient economy.
Private sector engagement
This signing marks a key milestone in AfDB’s efforts to deepen its support for Tanzania’s private sector. It reflects the Bank’s commitment to strengthening the country’s financial system and contributing to sustainable economic growth.
The facility is expected to improve access to trade finance in Tanzania, a challenge that has limited the capacity of local businesses to engage effectively in international trade.
