The African Development Bank (AfDB) has approved a $60 million trade finance guarantee facility for Equity Bank (Kenya), aimed at unlocking vital import finance for small- and medium-sized enterprises (SMEs) and boosting intra-African trade.
The facility allows Equity Bank to offer guarantees of up to 100 per cent to confirming banks against non-payment risks on Letters of Credit and similar instruments. Analysts say such support is crucial in Kenya, where SMEs often face high barriers to affordable trade finance, limiting growth and participation in regional markets.
“Trade finance is essential for Africa’s economic development, facilitating both domestic and international trade and promoting regional integration,” said Lamin Drammeh, manager of AfDB’s trade finance division.
Moses Nyabanda, managing director of Equity Bank, noted that the guarantee would strengthen the bank’s capacity to support local enterprises and ensure smoother cross-border transactions under the African Continental Free Trade Area (AfCFTA).
The facility reflects growing multilateral support for regional trade infrastructure and SME financing, aligning with broader efforts to integrate African economies.
