AFDB approves Exim Bank’s $10m for SMEs

DAR ES SALAAM: IN a significant boost to Tanzania’s trade and economic growth, Exim Bank Tanzania has received approval for 10 million US Dollars from the African Development Bank (AFDB).

The facility is set to strengthen Exim Bank’s capacity to support Small and Medium-sized Enterprises (SMEs) and corporates by enhancing access to trade finance solutions and promoting cross-border trade.

Under this facility, the African Development Bank will provide up to 100 percent guarantees to confirming banks against the non-payment risk associated with Letters of Credit and similar trade instruments issued by Exim Bank Tanzania. This will significantly improve the availability of import and export financing for Tanzanian businesses, helping them to compete more effectively both regionally and globally.

The partnership positions Exim Bank Tanzania as a key driver of inclusive trade growth, providing businesses with the financial confidence to expand into new markets.

By addressing the long-standing trade finance gap that many SMEs and corporates face, this collaboration will play a pivotal role in accelerating industrialization, creating jobs, and strengthening Tanzania’s position in regional trade.

“This partnership reflects the African Development Bank’s trust in Exim Bank Tanzania’s strength, integrity, and commitment to advancing trade finance in the country,” said Mr. Jaffari Matundu, Chief Executive Officer of Exim Bank Tanzania.

“Through this facility, we are empowering Tanzanian businesses – especially SMEs – to access the capital and confidence they need to engage in cross-border trade. 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.

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Matundu further emphasized that the collaboration aligns closely with the African Continental Free Trade Area (AfCFTA) goals, contributing to the broader Agenda 2063 vision of fostering intra-African trade and regional integration.

Commenting on the approval, Mr. Lamin Drammeh, Head of Trade Finance at the African Development Bank, reaffirmed the Bank’s commitment to supporting Africa’s trade agenda.

“Trade finance is essential for Africa’s economic development – facilitating domestic and international trade, boosting growth, and promoting regional integration. We are delighted to partner with Exim Bank Tanzania, a trusted institution with a strong footprint and expertise in Tanzania’s trade landscape, to further strengthen the region’s trade ecosystem,” Drammeh said.

The facility will catalyze enhancing business competitiveness, particularly among SMEs that form the backbone of Tanzania’s economy. By providing timely and accessible trade finance solutions, Exim Bank Tanzania continues to demonstrate its leadership in supporting business resilience, financial inclusion, and sustainable development.