AfDB and BOAT Sign $7.5M Deal to Boost Tanzania’s Trade Finance.

Wednesday 9th April 2025

African Development Bank’s Tanzania Country Manager, Patricia Laverley (right), and BOAT’s Deputy Managing Director, Hamza Cherkaoui, display signed copies of the $7.5 million trade finance transaction guarantee agreement.

Par inAfrika Reporter

The African Development Bank and the Bank of Africa Tanzania have entered a $7.5 million trade finance guarantee agreement aimed at accelerating trade activity in Tanzania. The facility is designed to de-risk letters of credit and other trade finance instruments, effectively allowing BOAT to provide seamless support to businesses involved in importing goods.

Speaking during the signing held in Dar es Salaam, the African Development Bank’s Country Manager for Tanzania, Patricia Laverley, emphasized how the agreement will address key trade finance gaps, especially for sectors like agriculture, manufacturing, energy, and general commerce. According to her, Tanzania’s economy will benefit greatly from more accessible financing options that cater to its growing import needs.

BOAT’s Deputy Managing Director, Hamza Cherkaoui, echoed the sentiment, highlighting how the partnership expands their confirmation network and ensures Tanzanian businesses get access to top-tier confirming banks. He emphasized that such partnerships unlock wider trade corridors, both regionally and internationally.

The facility is not only timely but also strongly aligned with the African Development Bank’s broader strategic pillars regional integration, industrialization, and food security. For Tanzania, it strengthens the implementation of Vision 2025 and fits into the nation’s strategic aim to foster a globally competitive economy.

This agreement marks a progressive milestone in the African Development Bank’s engagement with Tanzania’s private sector, reaffirming its intention to empower local businesses and stimulate the country’s financial ecosystem.