The African Development Bank Group (AfDB) has approved a $20 million Trade Finance Transaction Guarantee Scheme for Mozambique’s leading commercial finance company, Banco Comercial e de Investimentos SA (BCI), with the aim of closing the growing trade finance gap in Mozambique and fostering the growth of small and medium-sized enterprises (SMEs).
This three-year scheme provides up to 100% guarantee to international confirming banks on trade finance transactions issued by BCI. With trade rollovers expected, this guarantee could facilitate up to $120 million in trade flows over the next three years, providing a critical lifeline for small and medium-sized businesses navigating Mozambique’s restrictive foreign exchange and trade finance environment.
“This trade guarantee leverages the Bank’s AAA rating to unlock additional capital within Mozambique’s financial system, supporting broader market stability and liquidity,” said Romulo Correa, AfDB Country Manager for Mozambique. “
By de-risking trade transactions, the African Development Bank is enabling BCI to direct scarce foreign exchange resources to supporting small and medium-sized enterprises and local businesses that need it most to drive economic growth. ”
The facility aims to strengthen BCI’s role in trade finance, particularly for local companies involved in import and export activities. By guaranteeing trade transactions, AfDB reduces the risk of confirming foreign banks, enabling more competitive lending terms and greater access to capital for the Mozambican private sector.
BCI CEO Francisco Pinto Machado da Costa said: “This partnership with the African Development Bank is an important step in strengthening BCI’s support for the real economy.”
“The Bank remains committed to expanding trade finance for small and medium-sized enterprises and women-owned businesses, in line with our broader objective of promoting inclusive and sustainable growth.”
Mozambique’s trade and finance gap is a long-standing impediment to private sector development, particularly among small and medium-sized enterprises and women-led businesses. Limited access to foreign exchange and risk mitigation tools has historically constrained the country’s ability to participate in international trade, slowing growth in key sectors such as agriculture, manufacturing and light industry.
AfDB facilities are aligned with the World Bank’s First Cardinal Point, which unlocks the power of capital in Africa, and supports private sector development strategies that seek to leverage development finance to foster private investment across the continent.
The guarantee is also expected to accelerate regional integration by expanding access to trade finance and facilitate trade along Mozambique’s strategic transport corridor linking landlocked South African countries to global markets.
Mozambique’s strategic location and growing port infrastructure means it could greatly benefit from increased trade liquidity. Access to guaranteed trade finance will increase import and export activity, reduce supply chain bottlenecks and create job opportunities in logistics, manufacturing and services.
The deal has broader implications for African entrepreneurship. The facility will strengthen the continent’s private sector-led growth model by enabling small and medium-sized enterprises to more fully participate in international trade, promote gender-inclusive economic participation, and facilitate cross-border commerce that supports regional integration under frameworks such as the Southern African Development Community (SADC).
The partnership between AfDB and BCI exemplifies how development finance can unlock private capital, stimulate economic activity, and support sustainable and inclusive growth, and is a vital step towards a more resilient and integrated African trade ecosystem.
