African Development Bank and TDB Group Seal $150M Trade Finance Deal to Boost Intra-Africa Trade

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The African Development Bank (AfDB) and the Eastern and Southern African Trade and Development Bank (TDB Group) have signed a $150 million Trade Finance Unfunded Risk Participation Agreement (RPA) aimed at strengthening intra-Africa trade and regional integration.

The agreement, finalized during the African Investment Forum in Rabat, Morocco, will help address the significant trade finance gap across the continent.

The new facility, which offers guarantee coverage ranging from 50% to 75% for transactions in low-income and transition countries, is projected to support approximately $1.8 billion in trade over the next three years. This move is expected to promote greater economic connectivity within Africa and enhance access to trade finance for businesses.

TDB Group provides tailored trade finance solutions, including import and export financing, structured commodity finance, pre- and post-shipment finance, and issuance of letters of credit (LCs), guarantees, and bonds.

The beneficiaries of the RPA will include local and regional issuing banks in TDB Group’s member states, as well as African SMEs who rely on these institutions for their trade finance needs.

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Wegoki Mugeni, Chief Operating Officer of TDB Group, expressed excitement about the partnership.

“TDB Group is delighted to strengthen its strategic partnership with the African Development Bank Group through tailored risk-sharing facilities aimed at scaling up trade finance. This crucial support will help bridge the significant gaps in trade finance access as major international banks continue retreating from the continent.”

Attout Ahmed, Director of the Financial Sector Development Department at the African Development Bank, highlighted the importance of the collaboration.

“We are delighted to work with TDB Group, a strong partner with extensive knowledge and network in Africa, on a shared ambition to support the region’s Trade. Supporting Trade in Africa is a key priority at the African Development Bank. Trade finance is an important driver of economic growth and is critical for cross-border trade particularly in emerging markets.”

The partnership aligns with the African Development Bank’s Ten-Year Strategy and its High-5 strategic priorities—“Feed Africa,” “Industrialize Africa,” and “Integrate Africa”—and supports critical sectors such as agriculture, infrastructure, energy, construction, and manufacturing.