The African Development Bank Group has signed a $10.75 million Trade Finance Transaction Guarantee Facility with Intercontinental Investment Bank East Africa (iib East Africa) to expand financing opportunities for small and medium-sized enterprises (SMEs) and women-owned businesses in Djibouti.
Signed on 23 June 2026, the facility will strengthen iib East Africa’s ability to provide trade finance solutions, helping local businesses access funding for imports of essential equipment and goods. The initiative supports Djibouti’s industrial development goals by targeting key sectors including renewable energy, manufacturing, telecommunications, and other productive industries.
Through the transaction guarantee, the African Development Bank will provide up to 100% risk coverage to confirming banks, enabling the confirmation of letters of credit and other trade finance instruments issued by iib East Africa on behalf of Djiboutian SMEs and women-led enterprises.
The facility is expected to improve access to foreign currency financing, allowing entrepreneurs to invest in business expansion, strengthen supply chains, and increase participation in strategic economic sectors. It also supports efforts to promote private sector growth and create sustainable employment opportunities across Djibouti.
The African Development Bank highlighted that the partnership aligns with its objective of expanding direct private sector support in Djibouti. By strengthening iib East Africa’s capacity to serve SMEs, the initiative aims to boost local production, encourage economic diversification, and support thousands of jobs.
Intercontinental Investment Bank East Africa welcomed the partnership as an important step toward addressing financing challenges faced by SMEs. The bank noted that small businesses account for a significant share of employment in Djibouti and that improved access to capital is essential for strengthening economic resilience and creating new opportunities.
The African Development Bank’s Trade Finance Transaction Guarantee is one of its key instruments for supporting commercial banks across Africa. Launched in 2021, the programme helps expand trade finance availability by covering instruments such as confirmed letters of credit, trade loans, reimbursement undertakings, and other financial guarantees.
The partnership with iib East Africa reflects a broader effort to strengthen financial inclusion, support entrepreneurship, and promote sustainable economic development in the region. By improving access to trade finance, the initiative will help Djibouti’s businesses grow, enhance competitiveness, and contribute to long-term economic transformation.
