The African Development Bank (AfDB) and Trade and Development Bank (TDB), the East and Southern Africa Trade and Development Bank have signed an unfunded $150 million risk sharing agreement.

The agreement signed between the ADB and the TDB aims to boost intra-African trade, promote regional integration and contribute to the reduction of the trade finance gap in Africa, in line with the goals of the Free Trade Area. African continental exchange (AfCFTA). In implementing the terms of the agreement, the AfDB will provide guarantee coverage of 50%, and up to 75%, for transactions in low-income countries and transition states, based on risk sharing with TDB

According to Nwabufo Nnenna, the managing director of the African Development Bank for East Africa, “supporting trade in Africa is a priority. é essential for the African Development Bank. Trade finance is an important driver of economic growth, it is essential for cross-border trade, especially in emerging markets.”