The Board of Directors of the African Development Bank Group has approved a $10 million Trade Finance Transaction Guarantee (TG) to Banco Fomento de Angola S.A. (BFA).
Leveraging BFA’s strategic footprint in Angola, this guarantee will provide support to Small and Medium sized Enterprises, including women-led businesses.
The move will facilitate the import and export trade finance requirements of SMEs and, by extension strengthen the Angolan credit market.
The African Development Bank will provide up to 100% guarantee to participating banks for the non-payment risk arising from the confirmation of letters of credit and similar trade finance instruments issued by BFA.
African Development Bank Officer in Charge of the Financial Sector Development Department, Ahmed Attout emphasized the critical need for such support on the continent.
