Abidjan, Côte d'Ivoire – July 22, 2025: In a strategic move to enhance trade finance access in Tanzania and promote regional trade under the African Continental Free Trade Area (AfCFTA), the Board of Directors of the African Development Bank Group (AfDB) has approved a $50 million Trade Finance Transaction Guarantee facility in support of CRDB Bank Plc.
This facility is designed to provide up to 100% guarantee to confirming banks against the risk of non-payment from Letters of Credit and similar trade finance instruments issued by CRDB Bank. The arrangement aims to unlock critical trade financing, especially for Small and Medium Enterprises (SMEs) and local corporates—key players in Tanzania’s economic development.
"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, Head of Trade Finance at AfDB.
“We are delighted to work with CRDB Bank Plc, a strong partner with extensive knowledge and reach in Tanzania, to support a shared ambition of advancing trade in the region.”
The guarantee facility is expected to ease import trade activities and empower Tanzanian SMEs and corporates to actively participate in regional and global supply chains. Moreover, it supports the AfCFTA vision of creating a seamless, integrated African market by removing longstanding trade barriers.
CRDB BANK WELCOMES STRATEGIC PARTNERSHIP
Speaking after the approval, Abdulmajid Mussa Nsekela, Group CEO and Managing Director of CRDB Bank Plc, expressed gratitude to the African Development Bank for the trust and partnership.
“This strategic partnership enhances our capacity to support the trade finance needs of the SME and corporate sectors, which are the backbone of our economy and pivotal in driving inclusive and sustainable growth,” Nsekela said.
He further emphasized the impact on industrialization and job creation, noting that this facility will strengthen CRDB’s ability to foster regional integration and empower businesses that are often underserved in traditional financing models.
“SMEs and corporates are the drivers of industrialization, job creation, and regional integration. This facility removes barriers and helps them actively participate in intra-African and global trade,” he added.
DRIVING ECONOMIC INCLUSION AND TRADE TRANSFORMATION
This trade guarantee facility is part of AfDB’s wider effort to bridge Africa’s trade finance gap, which disproportionately affects SMEs due to perceived high risks. By collaborating with CRDB Bank—one of the region’s most trusted financial institutions—the African Development Bank is enabling greater financial inclusion, trade resilience, and private sector participation in regional economic development.
SOURCE: AFRICAN DEVELOPMENT BANK
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