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2 clusters · 3 sources · 15 days · First seen · Last updated

African trade finance and logistics guarantees

Overview

Financial institutions are providing guarantees to facilitate trade and reduce risk within African markets.

Afreximbank issued a $29 million guarantee to BSMART Technology Ltd to support the East African Community (EAC) digital customs bond. This system aims to streamline regional logistics by allowing a single digital guarantee to cover goods transiting through multiple member states, including Uganda, Rwanda, and Burundi, thereby reducing administrative burdens and paperwork.

In Tanzania, the African Development Bank signed a $10 million trade-finance transaction guarantee agreement with Exim Bank Tanzania. This facility is intended to cover non-payment risks for letters of credit, potentially supporting up to $60 million in trade transactions over three years. The initiative specifically targets Tanzania’s trade-finance gap to assist small and medium-sized enterprises in sectors such as agriculture, health, and energy.

Entities

BSMART Technology Ltd · African Development Bank · Dar es Salaam · East African Community · Afreximbank

Timeline

  1. [BUSINESS] 2 sources
    African Development Bank provides $10 million guarantee to Exim Bank Tanzania

    The African Development Bank has provided a $10 million guarantee to Exim Bank Tanzania to support up to $60 million in trade transactions, targeting SMEs and critical sectors like agriculture and health.

  2. [BUSINESS] 2 sources
    Afreximbank issues $29m guarantee for EAC digital customs bond

    Afreximbank has provided a $29 million guarantee to support the EAC Customs Bond, a digital system designed to streamline the movement of goods across East African borders.

Sources

256businessnews.com · ecofinagency.com · financesao.com