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    You are at:Home»African Development Bank»Trade and Financial Services Roundup: Issue 3, 2026
    African Development Bank

    Trade and Financial Services Roundup: Issue 3, 2026

    Xsum NewsBy Xsum NewsFebruary 1, 2026No Comments4 Mins Read1 Views
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    kenya

    Green finance and trade expansion

    Kenya has secured a USD 150 million financing package from the African Development Bank (AfDB) in partnership with KCB Bank Kenya Ltd to expand trade finance and green financing. This funding is targeted specifically at small and medium-sized enterprises and corporations in renewable energy, sustainable agriculture and infrastructure projects. A portion of the funds will be allocated to trade guarantees covering letters of credit and other trade instruments, reducing risks and improving cross-border trade flows. The initiative supports Kenya’s commitment to the goals of the African Continental Free Trade Area (AfCFTA) and regional economic integration.

    (Source: AfDB)

    uganda

    Fiscal shift and export profits

    Uganda plans to cut external budget support by 84% next fiscal year and focus on mobilizing domestic revenue to reduce dependence on foreign funding. This fiscal shift will take place at the same time as preparations for oil production in 2026, and is expected to increase government revenue. In the trade sector, Uganda’s gold exports surged by 76% to US$5.8 billion in 2025 due to rising global prices and market diversification. These gains strengthened foreign exchange earnings and increased the stability of Uganda’s financial system. Observers say a balance between fiscal independence and strategic export growth is key to maintaining economic resilience.

    (Source: Reuters)

    tanzania

    infrastructure investment for trade

    The African Development Bank (AfDB) has committed US$2.5 billion to Tanzania for priority infrastructure projects including roads, railways and trade corridors. These developments are aimed at strengthening regional connectivity, reducing logistics costs and increasing export competitiveness. This investment highlights Tanzania’s strategic position on East Africa’s trade routes, supporting both domestic economic growth and cross-border trade. Strengthening infrastructure is expected to attract private sector investment, strengthen supply chains and facilitate the flow of goods within the East African Community (EAC). Long-term benefits include lower transportation costs for exporters and greater integration in regional markets.

    (Source: EAC)

    Rwanda

    Digital payments pilot

    Rwanda and Tanzania have launched a pilot program to link their instant payment systems, a step towards regional financial integration under the framework of the East African Community (EAC). The project, supported by the EAC Secretariat and the World Bank, will enable real-time, low-cost cross-border transactions and reduce friction for traders and small businesses. The system aims to strengthen digital finance, improve access to formal banking services and support regional economic growth. Officials say that if successful, the platform could serve as a model for financial interoperability within the EAC, improving both trade efficiency and financial inclusion across member states.

    (Source: EAC)

    ethiopia

    Strengthening trade finance

    The African Development Bank (AfDB) has provided a US$40 million trade finance guarantee to Dasheng Bank to strengthen import and export support, especially for small and medium-sized enterprises and corporations. Guarantees cover letters of credit and other transaction instruments, facilitating smoother transactions and reducing risk. The program aims to strengthen Ethiopia’s participation in regional and continental markets, improve supply chain reliability and expand access to trade finance for small and medium-sized enterprises. Analysts emphasize the importance of these efforts to strengthen trading capacity and position Ethiopia to strengthen its integration with East Africa and African Continental Free Trade Area markets.

    (Source: AfDB)

    sudan

    Conflict hinders financial services

    Sudan’s ongoing civil war continues to disrupt trade and financial services, limiting the growth of formal banking and investment activities. Humanitarian agencies report that credit access, trade finance, and infrastructure financing remain severely restricted, limiting economic recovery. Multilateral organizations have warned that continued instability could further weaken private sector confidence and trade facilitation. Financial analysts say even routine domestic transactions face risks and foreign investors remain hesitant due to uncertainty. Although the government has announced limited regulatory reforms, the security situation remains a major impediment to meaningful growth in Sudan’s financial and trade sectors.

    (Source: Sudan Tribune)

    Somalia

    Opening of the national stock exchange

    Somalia is preparing to establish a National Stock Exchange (NSES) in early 2026, aiming to attract up to US$2 billion in diaspora investment. The exchange plans initial public offerings (IPOs) in sectors such as communications, energy and infrastructure. By turning discrete remittances into productive investments, NSES aims to deepen capital markets, attract foreign direct investment, and stimulate economic growth. Officials expect the exchange to provide a more secure and structured savings channel while enhancing private sector financing opportunities. The effort is part of a broader effort to rebuild Somalia’s financial infrastructure and trade competitiveness, which has been unstable after decades.

    (Source: The East African)

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