Benin African Development Bank Trade Finance Guarantee

The African Development Bank Group (AfDB) has recently approved a USD 15.75 million trade finance transaction guarantee facility for Bank of Africa in Benin. This underscores the Bank’s commitment to fostering industrialization and supporting the economic development of African nations, particularly in the Gulf of Guinea region. 

The facility is designed to facilitate the importation of critical supplies, production machinery, and telecommunications equipment essential for driving industrial growth in Benin. While agro-industry and light manufacturing remain the primary sectors targeted by this initiative, the guarantee also supports the importation of basic necessities to meet short-term local demand. This diverse focus aligns with the Bank’s overarching goal to address both immediate and long-term economic needs.

According to Lamin Drammeh, Head of Trade Finance at AfDB, the facility enables the Bank to provide a 100% guarantee to confirming banks, ensuring the smooth issuance of letters of credit and other trade finance mechanisms. This guarantees enhanced support to large local businesses and small and medium-sized enterprises (SMEs), which are key drivers of Benin’s economic landscape.
The transaction aligns with three of AfDB’s “High 5” strategic priorities: Feed Africa, Industrialize Africa, and Improve the Quality of Life for the People of Africa. By promoting industrial activity and ensuring the availability of modern machinery and supplies, the facility aims to contribute to Benin’s economic transformation.

This initiative presents significant opportunities for U.S. businesses seeking to expand their presence in Africa. The facility’s focus on importing advanced production machinery, telecommunications equipment, and agro-industrial supplies creates a demand for cutting-edge technology and high-quality goods—areas where U.S. companies excel. By leveraging this opportunity, U.S. companies can partner with local businesses and financial institutions, as suppliers for the equipment needed by these businesses.

Companies interested in exploring business opportunities with the AfDB in Benin are encouraged to contact our CS AfDB office. For further information please contact Senior Commercial Officer Ashley Ndir at Ashley.Ndir@trade.gov and Commercial Specialist Elvire Kodio at Elvire.Kodio@trade.gov.