AfDB Approves €10 Million Guarantee to Expand Trade Finance in Congo

The guarantee will enable Ecobank Congo to expand its capacity to finance imports and broader trade operations, helping businesses maintain supply chains and access vital goods.

The Board of Directors of the African Development Bank Group (AfDB) has approved a €10 million trade finance guarantee for Ecobank Congo, a move expected to strengthen trade flows across key sectors of the Congolese economy and improve access to international markets for local businesses.

The guarantee will support trade in essential goods and services, including foodstuffs such as oil and sugar, as well as strategic sectors like IT and communications, transport, health, and education.

Guarantee Covers Up to 100% of Non-Payment Risk

Under the arrangement, the African Development Bank will provide up to 100% coverage of the non-payment risk borne by banks confirming letters of credit and similar trade finance instruments issued by Ecobank Congo.

This credit support is designed to help address Congo’s short-term import needs, particularly as domestic industrial capacity remains insufficient to fully meet local demand.

By reducing risk for confirming banks, the guarantee is expected to unlock greater liquidity, lower trade transaction costs, and increase the availability of secure trade finance solutions for Congolese firms.

Supporting Trade, Growth, and Economic Resilience

The guarantee will enable Ecobank Congo to expand its capacity to finance imports and broader trade operations, helping businesses maintain supply chains and access vital goods.

The initiative comes as African economies continue to prioritise trade facilitation and private sector development as key drivers of resilience and sustainable growth.

Part of AfDB’s Transaction Guarantee Programme

The facility falls under AfDB’s transaction guarantees programme launched in 2021, which provides trade finance instruments to strengthen the ability of African commercial banks to support international trade.

These guarantees are available to eligible banks that meet AfDB due diligence standards and can cover instruments such as:

• Confirmed letters of credit

• Commercial loans

• Promissory notes

The programme aims to reduce risk barriers and encourage stronger participation of African banks in regional and global trade markets.

AfDB: Boosting Capacity of African Banks

Lamin Drammeh, Head of the Trade Finance Division at the AfDB, said the guarantee reflects the Bank’s continued commitment to empowering African financial institutions.

“This transaction guarantee illustrates the African Development Bank's ongoing commitment to strengthening the capacity of African banks to support international trade,” Drammeh said.

“By hedging the confirmation risk of letters of credit issued by Ecobank Congo, we are helping to streamline exchanges, reduce liquidity constraints and offer Congolese companies, especially SMEs, better access to regional and international markets.”

Ecobank Congo: Stronger Support for SMEs

Ecobank Congo Managing Director Olivier Brou Kouamé said the guarantee will significantly enhance the bank’s ability to provide secure and competitive trade finance solutions.

"This guarantee significantly strengthens our ability to support our customers in their international trade operations,” Kouamé said.

“It will allow us to offer more competitive and secure solutions to Congolese companies, especially SMEs, and to contribute actively to the dynamism of the national economy.”

SMEs, Women- and Youth-Led Firms Key Beneficiaries

Small and medium enterprises are expected to be the primary beneficiaries of the guarantee, alongside companies engaged in international trade.

The facility will also prioritise:

• Women-led businesses

• Youth entrepreneurs

• Firms operating in the green growth sector

By targeting inclusive trade participation, AfDB and Ecobank Congo aim to ensure broader economic impact and stronger opportunities for emerging entrepreneurs.

Strengthening Congo’s Trade Links

The €10 million guarantee is expected to play an important role in supporting Congo’s trade-dependent sectors, ensuring access to essential imports while helping local firms expand their reach into regional and global markets.