By Business Insider Reporter
In a major boost to Tanzania’s trade and economic growth, Exim Bank Tanzania has secured a US$ 10 million Trade Finance Guarantee Facility from the African Development Bank (AFDB).
The lender said in a statement on October 23, 2025 that the nearly TSh 25 billion financing is expected to unlock new opportunities for small and medium-sized enterprises (SMEs) and corporates across the country.
The facility, which provides up to 100 percent guarantees to confirming banks against non-payment risks associated with Letters of Credit and similar trade instruments, will expand Exim Bank’s capacity to provide vital trade finance solutions.
This translates into easier access to import and export financing, enabling Tanzanian businesses to compete more effectively in regional and global markets.
Empowering SMEs and local businesses
For Tanzania’s SMEs – the backbone of the national economy – this development is transformative. Many small businesses have historically struggled to secure trade financing, limiting their ability to import essential goods or expand into export markets.
With the AFDB-backed facility, more entrepreneurs can access the capital and confidence needed to scale operations, foster innovation and create jobs.
“This partnership empowers Tanzanian businesses to seize new trade opportunities, easing both import and export transactions while opening doors to global partnerships,” said Jaffari Matundu, CEO of Exim Bank Tanzania.
“It aligns closely with the African Continental Free Trade Area goals, accelerating regional integration and sustainable economic growth,” he added.
Strengthening the National Economy
Beyond SMEs, the facility is expected to have a ripple effect across Tanzania’s economy. By facilitating cross-border trade and industrial growth, it strengthens the country’s competitiveness, increases foreign exchange inflows, and supports job creation.
Economists and growth strategists predict that enhanced trade financing can contribute significantly to Tanzania’s industrialization drive and broader Agenda 2063 objectives for Africa.
Lamin Drammeh, Head of Trade Finance at the African Development Bank, emphasized that trade finance is crucial for Africa’s economic development. “We are delighted to partner with Exim Bank Tanzania to strengthen the region’s trade ecosystem. Supporting SMEs and corporates in Tanzania ensures inclusive growth and deeper regional integration,” he said.
A catalyst for inclusive growth
This partnership positions Exim Bank Tanzania not just as a financial institution but as a catalyst for inclusive economic growth.
By bridging the trade finance gap, the bank is helping ordinary Tanzanians from business owners to employees – benefit from increased business activity, market expansion, and economic stability.
With this US$10 million facility, Tanzania takes a significant step toward a more vibrant, competitive, and globally connected trade environment.
Established in 1997, Exim Bank Tanzania is one of the country’s leading financial institutions, recognized for its innovation, customer-centric solutions, and strong contribution to Tanzania’s economic growth. With a robust regional footprint across Comoros, Djibouti, Uganda, and Ethiopia, Exim Bank stands as one of the few indigenous banks from Tanzania to successfully expand beyond its borders.
