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, to expand access to trade finance for small and medium-sized enterprises (SMEs).

The three-year facility will provide up to 100% guarantee coverage to international confirming banks for trade finance transactions issued by BCI, helping to address the country’s widening trade finance gap. With transaction rollovers, the facility is expected to support up to $120 million in trade flows over 3 years.

"This Transaction Guarantee leverages the Bank's AAA rating to unlock additional capital within Mozambique’s financial system, supporting broader market stability and liquidity," said Rômulo Corrêa, the African Development Bank’s Country Manager for Mozambique. "By de-risking trade transactions, the African Development Bank is enabling BCI to redirect scarce foreign currency resources towards supporting the businesses that need it most—SMEs and local corporates driving economic growth."

This transaction-specific facility will strengthen BCI’s role in expanding trade finance in Mozambique, by increasing support for local enterprises and SME’ import and export activities. The initiative will boost economic activity and improve the delivery of goods and services across the country. "This partnership with the African Development Bank marks an important step in strengthening BCI’s support to the real economy," said Francisco Pinto Machado da Costa, Chief Executive Officer of BCI.  "The Bank remains committed to expanding trade finance for SMEs and women-owned businesses, in line with its broader objective of promoting inclusive e and sustainable growth."

The facility aligns with the African Development Bank’s First Cardinal Point—Unlock Africa's Capital Power—and its Private Sector Development Strategy. It is also expected to accelerate regional integration by facilitating trade along Mozambique's strategic transport corridors that connect landlocked southern Africa countries to global markets. 

Source: AfDB