African Development Bank and Bank of Africa Tanzania Sign $7.5 Million Facility to Boost Trade Finance
The African Development Bank (AfDB) and the Bank of Africa Tanzania (BOAT) have signed a landmark $7.5 million trade finance transaction guarantee facility aimed at bolstering the bank’s trade finance operations in Tanzania.
This new agreement will provide a 100% guarantee to confirming banks against non-payment risks associated with letters of credit and similar trade finance instruments issued by BOAT.
This facility is expected to support small and medium-sized enterprises (SMEs) and local businesses in the import sector, helping them access crucial trade finance to grow and expand.
The partnership is part of the broader objective to strengthen intra-Africa trade and supports the goals of the African Continental Free Trade Area (AfCFTA).
At the signing ceremony, which took place in Dar es Salaam, AfDB’s Country Manager for Tanzania, Patricia Laverley, emphasized the importance of the facility for Tanzania’s trade needs.
She highlighted its potential to support key sectors such as agriculture, manufacturing, and energy. “This facility will help enable BOAT to play a more strategic role in the regional and international market,” Laverley said.
Hamza Cherkaoui, Deputy Managing Director of BOAT, expressed appreciation for the partnership, noting that it would enhance the bank’s ability to provide seamless trade finance solutions, expand its network of confirming banks, and support businesses across various sectors.
The facility aligns with both BOAT’s strategic priorities and the African Development Bank’s broader objectives, including promoting regional integration, improving food security, and accelerating industrialization on the continent.
It also supports Tanzania’s 2021-2025 Country Strategy, which focuses on enhancing the private sector business environment and job creation, as well as the country’s Vision 2025 plan to build a competitive, resilient economy.
