CRDB secures $50m trade finance guarantee from AfDB

IVORY COAST: CRDB Bank has secured a 50 million US dollars Trade Finance Transaction Guarantee facility approved by the African Development Bank (AfDB) to support its trade finance activities.

This facility enables the Bank to provide up to 100 per cent guarantees to confirming banks against non-payment risks from Letters of Credit and similar trade finance instruments issued by CRDB.

AfDB Head of Trade Finance, Lamin Drammeh, said that supporting trade in Africa is a key priority for the bank.

“Trade finance is vital for Africa’s economic development, facilitating domestic and international trade, driving growth, and promoting regional integration.

“We are pleased to partner with CRDB, a strong collaborator with deep knowledge and networks in Tanzania, to support the region’s trade,” Drammeh said.

The facility will provide essential import trade finance to SMEs and local corporates in Tanzania.

It will also support intraAfrica trade, directly contributing to the successful implementation of the African Continental Free Trade Area (AfCFTA) agenda.

The CRDB Bank Group CEO and Managing Director, Abdulmajid Nsekela welcomed the trust placed in the bank by the AfDB through this facility.

“This strategic partnership enhances our capacity to support the trade finance needs of SME and Corporate sectors that are the backbone of our economy and pivotal in driving inclusive and sustainable growth,” he said.

He said SMEs and corporates drive industrialisation, job creation and regional integration, and this facility will help eliminate long-standing barriers to their participation in global and regional trade.

“This facility strengthens our resolve to foster regional trade and contribute meaningfully to the AfCFTA vision of a connected and prosperous Africa,” he noted.

Access to trade finance is crucial for SMEs and local businesses, which often face challenges securing the necessary funding to import goods and expand their operations.

By addressing these financing gaps, the facility empowers these enterprises to participate more fully in both regional and global markets. This, in turn, drives economic diversification and resilience.

Furthermore, enhancing trade finance infrastructure promotes smoother cross-border transactions, reduces risks and increases trust among trading partners.

This creates a more conducive environment for business growth and attracts further investment to the region.

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By supporting trade finance aligns with broader economic goals by creating jobs, boosting industrialization, and fostering greater economic integration across African countries.

Such initiatives are key to unlocking the continent’s full economic potential and achieving sustainable development.