DAR ES SALAAM, Sept. 29 -- THE African Development Bank (AfDB) and Exim Bank have signed a US$10 million Trade Finance Transaction Guarantee Facility, strengthening Exim Bank Tanzanias capacity to facilitate eligible trade finance transactions and support Tanzanian businesses engaged in cross-border trade.

Under the facility, AfDB will provide guarantees of up to 100% to confirming banks against eligible non-payment risks arising from Letters of Credit and similar trade finance instruments issued by Exim Bank . This additional risk protection will enable confirming banks to support more trade transactions originated by Exim Bank, while strengthening the banks ability to facilitate access to trade finance for SMEs and local corporates eng...