The African Development Bank Group (AfDB) has approved a $20 million Trade Finance Transaction Guarantee facility for Mozambique’s leading commercial lender, Banco Comercial e de Investimentos S.A. (BCI), in a bid to close the country’s widening trade finance gap and bolster small and medium-sized enterprise (SME) growth.
The three-year facility provides up to 100% guarantee coverage to international confirming banks on trade finance transactions issued by BCI. With expected transaction rollovers, the guarantee could facilitate up to $120 million in trade flows over the next three years, providing a critical lifeline for SMEs navigating Mozambique’s often-constrained foreign exchange and trade finance environment.
“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, AfDB 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.”
The facility is designed to strengthen BCI’s role in financing trade, particularly for local enterprises engaged in import and export activities. By guaranteeing trade transactions, the AfDB reduces the risk exposure for confirming banks abroad, enabling more competitive financing terms and expanded access to capital for Mozambique’s private sector.
“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, CEO 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 and sustainable growth.”
Mozambique’s trade finance gap has been a longstanding obstacle for private sector development, particularly among SMEs and women-led businesses. Limited access to foreign currency and risk mitigation tools has historically constrained the country’s ability to engage in international trade, slowing growth in key sectors such as agriculture, manufacturing and light industry.
The AfDB facility aligns with the Bank’s First Cardinal Point Unlock Africa’s Capital Power and supports its Private Sector Development Strategy, which seeks to leverage development finance to catalyse private investment across the continent.
By expanding trade finance access, the guarantee is also expected to accelerate regional integration, facilitating trade along Mozambique’s strategic transport corridors that link landlocked southern African countries to global markets.
Mozambique, with its strategic location and growing port infrastructure, stands to benefit significantly from enhanced trade liquidity. Access to guaranteed trade finance can increase import and export activity, reduce supply chain bottlenecks and create employment opportunities in logistics, manufacturing and services.
For African entrepreneurship, the transaction has wider implications. By enabling SMEs to participate more fully in international trade, the facility strengthens the continent’s private sector-led growth model, promotes gender-inclusive economic participation and fosters cross-border commerce that underpins regional integration under frameworks such as the Southern African Development Community (SADC).
The AfDB-BCI partnership exemplifies how development finance can unlock private capital, stimulate economic activity and support sustainable, inclusive growth, marking a pivotal step toward a more resilient and integrated African trade ecosystem.
