DAR ES SALAAM, Oct. 6 -- The African Development Bank (AfDB) has approved a 10 million US dollars trade finance guarantee facility for Exim Bank Tanzania to help small and medium-sized enterprises (SMEs) gain easier access to regional and global markets, the Bank said on Monday.

The facility, championed by AfDBs Country Manager for Tanzania, Dr. Patricia Laverley, aims to reduce barriers faced by local businesses seeking trade finance, a long-standing obstacle for Tanzanias private sector.

SMEs account for more than 90 percent of Tanzanias businesses and contribute about one-third of the countrys gross domestic product. AfDB said the new facility will provide up to 100 percent guarantees to international confirming banks against non-pay...