The African Development Bank Group has approved a $20 million trade finance guarantee facility for Banque Malgache de l’Océan Indien (BMOI) to support local businesses and accelerate industrial development in Madagascar. The three-year facility, approved on 29 May 2026, is expected to strengthen access to trade finance for companies operating across key sectors of the economy.
The initiative will facilitate the import of production inputs, industrial machinery, and telecommunications equipment essential for the growth of Madagascar’s manufacturing and agribusiness industries. By improving access to critical resources, the program aims to boost productivity, support economic growth, and contribute to the country’s industrialization agenda.
The trade finance facility will enable the African Development Bank to provide payment guarantees of up to 100 percent to confirming banks. This support will help secure letters of credit and other trade finance instruments issued by BMOI, making it easier for local enterprises and small and medium-sized businesses to engage in international trade.
Beyond industrial development, the facility is also expected to strengthen food and nutritional security by supporting imports of essential goods needed by businesses and consumers across Madagascar. Agribusiness and manufacturing have been identified as the primary sectors that will benefit from the program.
The financing initiative aligns with the African Development Bank’s 2022–2026 Country Strategy for Madagascar, which prioritizes agricultural transformation and the development of the manufacturing sector. Officials believe the facility will create new opportunities for local enterprises while enhancing the country’s economic resilience.
The program will benefit both large corporations and SMEs, including women-led businesses. Priority consideration will be given to projects with lower climate-related risks and reduced greenhouse gas emissions, reflecting the Bank’s commitment to sustainable and inclusive development.
Launched in 2021, the African Development Bank’s Transaction Guarantee program is designed to support commercial banks across Africa by reducing trade finance risks and improving access to international markets. The instrument covers a range of trade finance products, helping businesses secure the funding and guarantees needed to expand operations and drive economic growth.
