African financial institutions receive new support for trade and entrepreneurship

The African Development Bank (AfDB) has approved a $1 million grant to bolster entrepreneurship and small and medium-sized enterprise (SME) financing in Libya. This initiative, funded through the Bank’s Middle-Income Country Technical Assistance Fund, aims to help Libya diversify its economy away from oil and gas dependence. The project will focus on empowering women and young entrepreneurs by addressing structural challenges such as limited access to finance and weak business management skills. The program will be implemented by Libyan authorities in partnership with Expertise France.

In a separate development, the Africa Finance Corporation (AFC) and Munich Re have launched a $1 billion risk-sharing program called the Unfunded Managed Debt Mobilisation Programme. This initiative is designed to expand trade finance for African financial institutions by supporting commercial letters of credit, trade loans, and trade guarantees. The first phase of the program covers 38 institutions across 11 African countries, helping businesses manage payment risks and participate more effectively in international supply chains.