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East Africa Frontline News

NextFrontier Africa is a media platform spotlighting Africa’s emerging opportunities in technology, tourism, aviation, agriculture, health, logistics, real estate, trade, education, and e-commerce.

October 01.2025

2 Minutes Read

Boosting Trade Routes: AfDB's $10 Million Investment in Tanzania

Exim Bank Tanzania building showcasing Tanzania trade finance environment.

A New Era for Tanzanian Trade

The African Development Bank Group (AfDB) has taken a significant step in stimulating Tanzania's economy by approving a $10 million trade finance guarantee facility for Exim Bank Tanzania Limited. This initiative is poised to unlock an impressive $60 million in trade over the next three years, addressing the persistent trade finance gap that has burdened small and medium-sized enterprises (SMEs) in Tanzania.

SMEs constitute over 90% of the businesses in Tanzania and contribute about one-third to the nation’s GDP. However, they face a daunting trade finance gap of $1.3 billion annually, restricting their potential to engage in cross-border trade. With this new facility, Exim Bank aims to facilitate greater access to essential imports such as fertilizers, pharmaceuticals, and farming equipment, while also enhancing the export capabilities of local products like coffee, cashew, and cotton.

Strengthening the Supply Chain

This financial support will enable Exim Bank to reduce reliance on foreign exchange collateral—a common barrier in securing loans from international banks—allowing them to allocate more resources toward supporting local businesses. The aid is particularly vital not just for growing the SMEs but also for bolstering key sectors such as agriculture, health, energy, and manufacturing, which ultimately contribute to a more resilient supply chain amid global fluctuations.

Future Opportunities on the Horizon

As AfDB's Lamin Drammeh noted, trade finance plays a crucial role in promoting regional integration and economic sustainability. The collaboration with Exim Bank aligns perfectly with the bank’s overarching goals as outlined in its Ten-Year Strategy and the government’s Tanzania Vision 2025, which emphasize enhancing private sector access to finance.

This is an exciting time for Tanzania as this initiative is set to foster new partnerships within the financial ecosystem. As Exim Bank's Chief Executive Officer, Jaffari Matundu, emphasized, not only will this facilitate trade, but it will also pave the way for innovative collaborations that can spur job creation and economic growth.

For logistics managers and business travelers looking to navigate Tanzanian trade routes, this promise of easier access to financing could refine the way they plan and operate their ventures, easing the flow of goods and services in and out of the country.

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Boosting Trade Routes: AfDB's $10 Million Investment in Tanzania

A New Era for Tanzanian Trade

Strengthening the Supply Chain

Future Opportunities on the Horizon

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