Multilateral development finance institution the African Development Bank (AfDB) has signed a deal to provide financial institution the Bank of Africa Tanzania (BOAT) with a $7.5 million facility to bolster its trade finance activities.
BOAT will use the facility to enhance access to import-related financing for small and medium-sized enterprises (SMEs) and local corporations. The bank will offer a 100% guarantee against non-payment risks to financial institutions extending credit to the SMEs.
Patricia Laverley, Country Manager, BOAT, said the facility will enable the bank to play a more strategic role in advancing food security and industrialization in Tanzania by supporting key sectors of the economy, including agriculture, manufacturing and energy.
The deal aligns with AfDB’s vision to bolster intra-Africa trade, in line with the African Continental Free Trade Area initiative. The financing also supports Tanzania’s Country Strategy Paper (2021–2025) and Vision 2025 – economic development strategies aimed at driving private sector involvement and job creation to enhance economic resilience and global competitiveness.
