AfDB Approves $20m Trade Finance Guarantee For Access Bank Zambia

The Board of Directors of the African Development Bank has approved a $20 million Trade Finance Transaction Guarantee for Access Bank Zambia to boost access to trade finance for small and medium enterprises (SMEs) in Zambia.

The facility, which marks the first transaction between the African Development Bank and Access Bank Zambia, is expected to support up to $240 million in trade volumes over five years.

According to the bank, the initiative forms part of its broader Trade Finance Program, which has supported more than $13.8 billion in trade volumes across Africa since 2013.

The guarantee will provide up to 100 percent risk cover to international confirming banks on trade finance instruments issued by Access Bank Zambia, enabling the bank to expand its support for businesses engaged in cross-border trade.

African Development Bank Country Manager for Zambia, Raubil Olaniyi Durowoju, said the facility would help Zambian businesses participate more actively in regional and global trade while supporting job creation and economic growth.

The financing is expected to improve SMEs’ access to letters of credit for importing agricultural inputs, manufactured goods, solar panels, and other essential commodities, while also supporting export-oriented businesses.

The initiative also includes a gender-focused component through the bank’s Affirmative Finance Action for Women in Africa (AFAWA) programme, aimed at increasing support for women-led enterprises.

Managing Director of Access Bank Zambia, Iheanyi Nwogu, described the partnership as a major boost for trade finance operations and Zambia’s long-term economic growth.