AfDB brings Rwanda’s banks together to widen trade finance access for local businesses

The continent’s trade finance gap was estimated at between $74 billion and $92 billion in 2024, restricting businesses’ ability to fulfil transactions, grow and reach new customers.

Nearly all of Rwanda's commercial banks joined the African Development Bank Group at a breakfast meeting in Kigali on 5 October to discuss how more businesses could secure financing for imports and exports. The discussions focused on expanding access to trade finance and strengthening Rwanda's connections with regional and global markets. The continent's trade finance gap was estimated at between $74 billion and $92 billion in 2024, restricting businesses' ability to fulfil transactions, grow and reach new customers.

Building partnerships to help businesses trade

The African Development Bank Group's trade finance programme works through financial institutions to increase financing for businesses, particularly small and medium-sized enterprises. Its purpose is to help close the funding gap and support trade within Africa and with markets beyond the continent.

Staff from the Bank's Rwanda Country Office and trade finance team attended the Kigali meeting, allowing commercial banks to discuss the programme and explore possible cooperation.

Rwanda Country Manager Aissa Toure Sarr described partnerships with financial institutions as important to the country's economic development and regional trade ambitions. She said the meeting offered an opportunity to deepen understanding of the programme and develop future collaboration with Rwandan lenders.

The discussions moved into individual follow-up meetings with almost all commercial banks operating in Rwanda, where the Bank explored potential partnerships and identified financing opportunities.

Four products address different financing barriers

Bernard Muhati, Principal Trade Finance Officer for East Africa, presented the Bank's four trade finance products, explaining how they can help financial institutions and agricultural commodity aggregators overcome obstacles such as limited foreign currency availability and the risks of international transactions.

The Trade Finance Line of Credit provides funding to support trade transactions. The Transaction Guarantee and Risk Participation Agreement help banks manage payment risks, supporting their capacity to facilitate trade.

For agricultural businesses and supply chains, the Soft Commodity Finance Facility provides financing for agricultural commodities and related activities.

The programme includes technical assistance and training to strengthen financial institutions' ability to deliver these services. That support addresses the expertise needed to assess transactions and manage trade finance alongside the availability of funding.

Institutions seeking to participate must be registered and operating in an African Development Bank Regional Member Country and demonstrate financial and commercial viability. They must maintain sound risk management and corporate governance, meet the Bank's internal risk requirements and comply with specified environmental and social standards.

Trade finance adds to a wider partnership with Rwanda

The Kigali engagement forms part of the Bank's broader work with Rwanda on economic transformation and private sector development, connecting business financing with regional integration and inclusive, sustainable growth.

Its current portfolio in Rwanda comprises 28 operations worth approximately $2.6 billion. These support energy, water and sanitation, transport, agriculture, skills development, information and communication technology, finance, governance and regional integration.

The trade finance discussions add a practical banking dimension to that partnership, opening conversations about how lenders can better support businesses moving goods across borders. The bilateral meetings provided a starting point for identifying where the Bank's funding, guarantees and technical support could meet the needs of Rwanda's financial institutions and their customers.