AfDB Approves $20m Trade Finance Facility to Boost Mozambican SMEs
The African Development Bank Group has approved a US$20 million trade finance transaction guarantee facility for Banco Comercial e de Investimentos, one of Mozambique’s leading commercial banks, to expand access to trade finance for small and medium-sized enterprises.
The three-year facility will provide up to 100 per cent guarantee coverage to international confirming banks for trade finance transactions issued by BCI. With transaction rollovers, the programme is expected to support up to US$120 million in trade flows over the next three years.
Rômulo Corrêa, the African Development Bank’s Country Manager for Mozambique, said the facility will help unlock capital within the country’s financial system and improve liquidity for businesses.
“This Transaction Guarantee leverages the Bank’s AAA rating to unlock additional capital within Mozambique’s financial system, supporting broader market stability and liquidity,” Corrêa said.
He added that by reducing risk in trade transactions, the facility will allow BCI to channel scarce foreign currency resources towards SMEs and local companies driving economic growth.
According to BCI Chief Executive Officer Francisco Pinto Machado da Costa, the partnership will strengthen the bank’s role in supporting the real economy.
“This partnership with the African Development Bank marks an important step in strengthening BCI’s support to the real economy,” he said. “The bank remains committed to expanding trade finance for SMEs and women-owned businesses in line with its objective of promoting inclusive and sustainable growth.”
The initiative is aligned with the African Development Bank’s strategy to unlock Africa’s capital potential and strengthen private sector development. It is also expected to facilitate trade along Mozambique’s key transport corridors, connecting landlocked countries in southern Africa to international markets.
