 Trade Finance facility to support small- and medium-sized enterprises){kind=link}
Equity Bank has secured $60 million African Development Bank (AfDB) Trade Finance Transaction Guarantee facility to support small- and medium-sized enterprises (SMEs) and driving intra-Africa trade.
The facility allows Equity Bank to provide guarantees of up to 100% to confirming banks for non-payment risks linked to Letters of Credit and similar trade finance instruments issued in Kenya. It is expected to meet the import trade finance needs of local businesses and support regional commerce under the African Continental Free Trade Area (AfCFTA) framework.
“Supporting trade in Africa is a key priority at the African Development Bank,” said Lamin Drammeh, AfDB Trade Finance Division Manager. “Trade finance facilitates domestic and international trade, drives economic growth, and promotes regional integration. We are delighted to work with Equity Bank, a strong partner with deep local knowledge and network, to advance this shared objective.”
Moses Nyabanda, Managing Director of Equity Bank (Kenya), said the facility comes at a critical time for Kenyan businesses, particularly SMEs that often face challenges accessing affordable trade finance. “The AfDB’s support strengthens Equity Bank’s capacity to unlock growth opportunities for local enterprises by enhancing their ability to trade confidently, manage risk, and sustain operations,” Nyabanda added.
With the guarantee in place, the bank will expand access to essential trade finance instruments, enabling importers to transact smoothly and securely.