The African Development Bank (African Development Bank) has approved a $20 million Trade Finance Transaction Guarantee for Access Bank Zambia Limited, aiming to significantly expand access to trade finance for small and medium enterprises across Zambia.
The facility is part of the African Development Bank’s broader Trade Finance Program, which has supported more than $13.8 billion in trade volumes across 129 financial institutions since 2013. The new guarantee is expected to unlock up to $240 million in trade over its five-year lifespan, helping Zambian SMEs participate more effectively in regional and global markets.
Despite contributing around 70% of Zambia’s GDP and 88% of employment, SMEs in the country continue to face a major shortage of affordable trade finance. Many businesses struggle to secure letters of credit or working capital, limiting their ability to import essential goods, agricultural inputs, and manufacturing components.
The guarantee is designed to address this gap by providing up to 100% risk cover to international confirming banks on trade finance instruments issued by Access Bank Zambia. This will reduce risk exposure and enable the bank to scale its trade finance support without heavy collateral requirements that have traditionally constrained lending.
For small businesses, the initiative is expected to improve access to critical imports such as agricultural supplies, solar equipment, and industrial inputs, while also strengthening export capacity. In turn, this is likely to support job creation, increase business activity, and improve government revenues through trade-related taxes.
The programme also includes a strong focus on gender inclusion, with additional support linked to the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative. This will encourage greater participation of women-led enterprises, particularly in agriculture and informal trade sectors where financing gaps are most severe.
AfDB officials said the facility will help position Zambia as a more attractive and creditworthy market for international trade finance, encouraging global financial institutions to engage more actively in supporting local businesses.
Access Bank Zambia leadership welcomed the partnership, stating that the guarantee will accelerate trade finance growth and deepen cross-border trade flows, contributing to long-term economic development in the country.
