The African Development Bank (AfDB) and Bank of Africa Benin (BOA-Benin) signed a €15 million trade finance guarantee agreement on May 12 in Cotonou, aimed at boosting access to financing for Beninese businesses, particularly SMEs and women-led enterprises.
The three-year facility is designed to help BOA-Benin support large corporations as well as small and medium-sized enterprises (SMEs).
The financing will facilitate the import of key inputs such as industrial machinery, telecommunications equipment, and essential goods, all of which are critical for Benin’s industrialization efforts.
“This guarantee will make it easier for BOA-Benin to issue confirmed letters of credit and other trade instruments by providing coverage to correspondent banks,” said Lamin Drammeh, Head of the Trade Finance Division at the AfDB.
Beyond the industrial sector, the initiative is also expected to support the import of basic necessities to meet local demand, contributing to food and supply security.
Robert Masumbuko, AfDB’s Country Manager in Benin, welcomed the partnership, saying it “will allow the Bank to offer up to 100% guarantee coverage, thereby enhancing access to trade finance for Beninese enterprises.”
Abdel Mumin Zampalégré, Managing Director of BOA-Benin, highlighted that the agreement aligns with the Bank of Africa Group’s strategy, which prioritizes international trade financing as a key growth area.
The initiative is consistent with both the AfDB’s 2022–2026 Country strategy paper for Benin and the country’s 2018–2025 National Development Plan, with the broader goal of promoting economic competitiveness, productivity, and inclusive, sustainable growth.
TE/sf/lb/gik//APA