Dar es Salaam. In a major step toward strengthening Tanzania’s trade and industrial growth, Exim Bank Tanzania has secured a $10 million Trade Finance Transaction Guarantee Facility from the African Development Bank (AfDB).
The facility is expected to enhance access to trade finance solutions for Small and Medium-sized Enterprises (SMEs) and corporates while deepening the country’s participation in regional and international trade.
Under the agreement, AfDB will provide up to 100 percent guarantees to confirming banks against the non-payment risk of trade instruments such as Letters of Credit issued by Exim Bank.
The arrangement aims to increase the availability of import and export financing, making it easier for Tanzanian businesses to expand into new markets.
Exim Bank Tanzania Chief Executive Officer Jaffari Matundu said the partnership underscores AfDB’s confidence in the bank’s strength and reliability in driving trade growth.
“Through this facility, we are empowering Tanzanian businesses — especially SMEs — to access the capital and confidence they need to engage in cross-border trade,” he said. “It will not only ease import and export transactions but also open doors to new global partnerships, drive innovation, and support the country’s vision for sustainable economic growth.”
He added that the collaboration aligns with the objectives of the African Continental Free Trade Area (AfCFTA) and Agenda 2063, both of which promote intra-African trade and regional integration.
AfDB’s Head of Trade Finance Lamin Drammeh said the partnership reinforces the Bank’s commitment to unlocking Africa’s trade potential.
“Trade finance is essential for Africa’s economic development — facilitating domestic and international trade, boosting growth, and promoting regional integration,” he said. “We are delighted to partner with Exim Bank Tanzania, a trusted institution with a strong footprint and expertise in the country’s trade landscape.”
The facility positions Exim Bank as a key enabler in Tanzania’s trade ecosystem, offering financial instruments that bridge gaps in liquidity and risk coverage. By extending guarantees to confirming banks, Exim will make it easier for local businesses to secure international trade deals, reducing dependence on cash-based transactions and fostering confidence among global trading partners.
The initiative is also expected to stimulate industrialization and job creation, particularly among SMEs that make up the backbone of Tanzania’s economy.
“This partnership reflects our long-standing mission to promote inclusive trade growth,” Mr. Matundu added. “By addressing financing constraints, we are enabling Tanzanian entrepreneurs to scale up operations, diversify exports, and strengthen their competitiveness across East Africa and beyond.”
