AfDB, BOAT Ink $7.5M Trade Finance Deal to Unlock Global Markets for Tanzanian SMEs
In a bold move to strengthen Tanzania’s access to global trade, the African Development Bank (AfDB) has signed a landmark $7.5 million trade finance agreement with Bank of Africa Tanzania (BOAT), a partnership designed to eliminate financing bottlenecks that have long hindered small and medium-sized enterprises (SMEs) in the country.
The deal, sealed in Dar es Salaam on March 10, 2025, is a game-changer for Tanzanian businesses seeking to engage in international trade. Under the agreement, the AfDB will provide up to 100% guarantee coverage for select trade transactions facilitated by BOAT. This guarantee mechanism significantly enhances BOAT’s credibility with global correspondent banks, especially critical when issuing letters of credit on behalf of Tanzanian importers.
“This is about more than just financing,” said the AfDB’s Country Manager for Tanzania. “It’s about empowering our businesses to play on a global field.”
Breaking Financial Barriers for Tanzanian Entrepreneurs
Access to trade finance remains one of the most formidable hurdles for African SMEs. Without strong international credit profiles or relationships with foreign banks, many are locked out of essential import-export channels.
This new AfDB-BOAT partnership directly tackles that challenge. By providing the AfDB’s institutional backing, BOAT is now positioned to offer safer, faster, and more accessible trade solutions to local businesses, particularly those in strategic sectors such as:
- Agriculture
- Manufacturing
- Energy
- General Commerce
“We see this partnership as a strategic boost to our mission,” said BOAT’s Deputy Managing Director. “It gives our clients access to world-class financial tools and builds confidence in cross-border engagements.”
An Alignment with Regional and National Growth Agendas
Beyond immediate trade facilitation, the agreement represents a strategic convergence with two powerful development blueprints:
- The African Continental Free Trade Area (AfCFTA)
The AfDB-BOAT partnership contributes directly to AfCFTA’s vision of deepening intra-African trade, creating a more integrated and self-reliant African economy.
- Tanzania’s Vision 2025
By supporting SMEs, the backbone of the economy, the initiative fuels the national goal of building a resilient, diversified, and inclusive economy led by local enterprise and innovation.
The Bigger Picture: Empowering the Future of African Trade
This $7.5 million trade finance facility isn’t just a financial injection; it’s a platform for transformation. It equips Tanzanian SMEs with the confidence and credibility to engage in global commerce, scale their operations, and participate more fully in Africa’s economic rise.
The move reinforces the AfDB’s role as a pan-African enabler of private sector growth and aligns with BOAT’s vision of becoming a catalyst for trade-led development in East Africa.
In a world where financial access can make or break entrepreneurial success, this partnership provides what many businesses need most: a level playing field.
