By Business Insider Reporter
CRDB Bank has secured a US$50 million Trade Finance Transaction Guarantee from the African Development Bank (AfDB) – a catalytic move expected to significantly boost trade, industrialisation, and economic resilience in Tanzania and the wider East African region.
Approved by the AfDB, the facility will enable CRDB to provide up to 100% guarantees to international confirming banks, mitigating non-payment risks associated with Letters of Credit and other trade finance instruments. This strategic move will ease access to financing for Small and Medium Enterprises (SMEs) and corporates, who are often locked out of global and regional supply chains due to risk perceptions and limited collateral.
Powering regional trade, industrialisation
The facility’s most immediate impact will be seen in the import-export landscape, where it will bridge financing gaps for local businesses – particularly those involved in manufacturing, agribusiness, construction, and logistics.
“Trade finance is vital for Africa’s economic development,” said Lamin Drammeh, Head of Trade Finance at AfDB. “It facilitates both domestic and international commerce, drives inclusive growth, and accelerates regional integration.
This facility aligns perfectly with our commitment to supporting Africa’s intra-regional trade, especially under the African Continental Free Trade Area (AfCFTA).”
Tanzania, as a gateway to East and Central Africa through ports such as Dar es Salaam and Tanga, stands to benefit enormously.
The new guarantees will empower Tanzanian businesses to source quality inputs from abroad, strengthen export capacity, and become more competitive in regional value chains.
Lifeline for SMEs
Access to affordable trade finance remains one of the most significant barriers to SME growth across Africa.
In Tanzania, where SMEs account for more than 90% of businesses and contribute over 27% to GDP, this facility is expected to have a transformative effect.
CRDB Bank Group CEO and Managing Director Abdulmajid Nsekela underscored this impact:
“This strategic partnership enhances our ability to meet the trade finance needs of Tanzania’s SME and corporate sectors – critical engines of job creation, innovation, and industrial transformation. It is also a powerful vote of confidence in CRDB’s capacity and regional reach.”
He added that the facility will help dismantle the long-standing barriers Tanzanian enterprises face in participating fully in global commerce.
Boosting the AfCFTA Vision
Beyond national borders, the facility directly supports the African Continental Free Trade Area (AfCFTA), which seeks to create a single market of over 1.4 billion people and a combined GDP of US$3.4 trillion.
By enabling smoother cross-border transactions, reducing perceived risks, and enhancing liquidity, the AfDB-CRDB partnership will help operationalise AfCFTA’s goals of deepening regional value chains, fostering industrial clusters, and expanding intra-African trade.
“This facility strengthens our resolve to foster regional trade and contribute meaningfully to the AfCFTA vision of a connected and prosperous Africa,” Nsekela said.
Attracting investment and building resilience
Increased access to trade finance also enhances investor confidence, as it signals a maturing financial ecosystem capable of supporting business growth.
The facility is expected to spur new investment in logistics, manufacturing, and export-driven sectors, especially in Tanzania’s industrial zones and special economic areas. Moreover, by enabling businesses to diversify their supply chains and markets, the facility contributes to economic resilience – making Tanzania and its neighbours better equipped to withstand global shocks such as supply chain disruptions or commodity price volatility.
