AfDB APPROVES $10 MILLION TRADE FINANCE FACILITY TO EMPOWER TANZANIAN SMEs THROUGH EXIM BANK

President Dr. Samia Suluhu Hassan shakes hands with the African Development Bank Country Manager for Tanzania, Dr. Patricia Laverley, during their meeting at Chamwino State House in Dodoma recently.

Dar es Salaam, 6 October 2025 — The African Development Bank Group (AfDB), under the leadership of Dr. Patricia Laverley, Country Manager for Tanzania, has approved a USD 10 million trade finance transaction guarantee facility for Exim Bank Tanzania Limited. The facility aims to unlock new opportunities for Tanzanian small and medium enterprises (SMEs) and corporates to access regional and international markets.

This milestone initiative is expected to bridge Tanzania’s trade finance gap, enabling greater participation of local businesses in cross-border trade and supporting the country’s industrialization and growth agenda.

Supporting Local Enterprises and Trade Expansion

SMEs account for over 90% of businesses in Tanzania and contribute nearly a third of the country’s GDP. However, many face persistent challenges accessing affordable trade finance due to high collateral requirements and limited risk appetite from international confirming banks.

Through this new facility, AfDB will provide up to 100% guarantees against non-payment risks, effectively opening up trade finance lines for Exim Bank Tanzania. This will enable the bank to finance the import of essential goods such as fertilizers, pharmaceuticals, and agricultural equipment, which are critical for industrial growth and food security.

A Game-Changer for Tanzania’s Private Sector

Dr. Laverley emphasized that the initiative will reduce dependence on foreign exchange collateral, freeing up capital for more productive lending to local enterprises. Over the next three years, the facility is projected to support up to USD 60 million in trade transactions, directly benefiting key sectors including agriculture, health, energy, and manufacturing.

“This initiative will not only enhance Tanzania’s ability to import key goods and export commodities like coffee, cashew, and cotton,” said Dr. Laverley, “but also empower more locally owned businesses to compete globally and create meaningful employment opportunities.”

Aligning With Tanzania’s Development Goals

The partnership between AfDB and Exim Bank Tanzania reinforces the Bank’s commitment to narrowing Tanzania’s trade finance gap in line with Tanzania’s Vision 2025 and AfDB’s strategic priorities. Under Dr. Laverley’s leadership, this intervention marks a transformative step toward building a resilient and competitive private sector that fuels inclusive economic growth.