The African Development Bank Group has approved a $20 million Trade Finance Transaction Guarantee facility for Banco Comercial e de Investimentos S.A. (BCI), Mozambique’s leading commercial bank. The initiative aims to expand access to trade finance for small and medium-sized enterprises (SMEs), which often face difficulties securing financial support for import and export activities.
The three-year facility will provide up to 100% guarantee coverage to international confirming banks for trade finance transactions issued by BCI. By reducing the risks for international partners, the facility is expected to help close Mozambique’s growing trade finance gap and support up to $120 million in trade flows over the next three years through transaction rollovers.
The program is designed to strengthen Mozambique’s financial system by leveraging the African Development Bank’s strong credit rating to unlock additional capital. This support allows BCI to redirect limited foreign currency resources toward SMEs and local businesses that play a key role in driving economic growth and economic stability in the country.
Through this partnership, BCI will expand its capacity to support local enterprises by increasing trade finance opportunities for SMEs and women-owned businesses. The initiative is expected to stimulate economic activity, enhance the movement of goods and services, and strengthen the role of small businesses in Mozambique’s economy.
The facility also aligns with the African Development Bank’s broader strategy to unlock Africa’s capital potential and promote private sector development. By facilitating trade along Mozambique’s key transport corridors that connect landlocked countries in southern Africa to global markets, the initiative is also expected to contribute to greater regional trade and economic integration.
