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Trade finance: AfDB and BOA Tanzania sign a $7.5 million agreement

08/04/2025
Source : ORISHAS FINANCE
Categories: Sectors

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Un accord de garentie de 7.5 million dollars was signed on 10 March 2025 in Dar es Salaam, between the African Development Bank and Bank of Africa Tanzania (BOAT). It aims to boost Bank of Africa's trade finance activities in Tanzania.

Through this collaboration, the ADB will provide a guarantee of up to 100% to confirming banks against the risks of non-payment arising from letters of credit and other similar trade financing instruments issued by Bank of Africa Tanzania. The facility is part of efforts to strengthen intra-African trade, thereby directly contributing to the goals of the African Continental Free Trade Area (AfCFTA). It will support small and medium-sized enterprises (SMEs) and local businesses active in the import sector

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Cette nouvelle facilité de garantie commerciale s' inscrit dans le droit fil des priorités stratégiques de Bank of Africa Tanzania et des objectifs plus larges de la African Development Bank , including promoting regional integration, strengthening food security, and industrializing Africa. It also supports the Bank's 2021-2025 Country Strategy Paper for Tanzania, which focuses on improving the business environment for job creation. The signing of this agreement marks an important step in the direct engagement of the African Development Bank Group style="font-family: "Bookman Old Style”, serif"> with the Tanzanian private sector, reaffirming its commitment to strengthen the financial sector and economic development of the country.

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