The African Development Bank (AfDB) and the Bank of Africa Tanzania (BOAT) have teamed up on a new $7.5 million deal that could open major doors for Tanzanian entrepreneurs trying to import goods or expand their trade.
This new partnership means AfDB will guarantee up to 100% of certain trade transactions handled by BOAT. That's a fancy way of saying: if a Tanzanian business wants to import goods and needs a letter of credit (a kind of financial promise to suppliers), AfDB will back BOAT so other international banks feel safe doing business with them.
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Because it's a game-changer for small businesses. Many SMEs struggle to get trade finance due to trust issues or lack of connections with global banks. This new move is like giving them a VIP pass—making trade easier, faster, and safer.
During the signing event in Dar es Salaam on March 10, 2025, AfDB's Country Manager for Tanzania, Patricia Laverley, said this will help sectors that really matter like agriculture, manufacturing, energy, and general trade.
"It's not just about money it's about giving local businesses the power to compete globally," she said.
Hamza Cherkaoui, Deputy Managing Director of BOAT, also shared his excitement: "This partnership strengthens our ability to support businesses across different sectors.
It helps us expand our global trade network and connect Tanzanian businesses with world-class financial support."
But this isn't just a win for local businesses—it's part of a much bigger picture. The deal supports Africa's wider goals of boosting trade between countries on the continent under the African Continental Free Trade Area (AfCFTA). It also fits with Tanzania's national goals like Vision 2025, which aims to build a strong, self-sustaining economy.
This $7.5 million agreement is more than paperwork. It's a powerful step toward building a future where Tanzanian SMEs can confidently step into international markets and scale their businesses—without the usual barriers.
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