AfDB and BIAT Sign $50m Trade Finance Facility to Boost Tunisia’s Private Sector

The African Development Bank Group (AfDB) and the Banque Internationale Arabe de Tunisie (BIAT) have signed a $50 million Trade Finance Guarantee Facility aimed at strengthening trade finance, supporting Tunisian businesses, and improving access to essential goods across the country.

The agreement was signed Friday at BIAT's headquarters in Tunis and marks a major step in expanding financial tools available to Tunisia's private sector, reinforcing supply chains, boosting local production, and contributing to job creation.

The signing also highlights the African Development Bank's continued commitment to supporting Tunisia's financial sector reforms and broader government efforts to enhance economic resilience.

Strengthening Trade Finance and Supply Chains

The new guarantee facility is expected to support Tunisian companies by easing access to trade finance instruments that are essential for importing key industrial goods and maintaining production flows.

The facility will primarily support the importation of:

• Industrial inputs

• Production machinery

• Telecommunications equipment

• Renewable energy technologies

These imports are considered critical to Tunisia's industrialisation agenda and long-term competitiveness.

Unlocking International Bank Support

A core feature of the facility is its role in facilitating the confirmation of trade finance instruments issued by BIAT, including letters of credit.

Under the agreement, the African Development Bank will provide guarantees of up to 100% to international banks, enabling them to confirm trade instruments issued on behalf of Tunisian companies.

This mechanism reduces risk for global financial institutions and expands Tunisian firms' ability to engage securely in international trade.

Supporting SMEs and Women-Led Businesses

With a tenor of three years, the facility will benefit a broad range of businesses, including:

• Large corporations

• Small and medium-sized enterprises (SMEs)

• Women-led enterprises

Priority sectors include agro-industry and light manufacturing, alongside the importation of essential goods to meet domestic demand.

Focus on Low-Carbon and Climate-Aligned Projects

Eligible transactions under the facility will focus strongly on low-carbon projects, aligning with Tunisia's national climate objectives.

Renewable energy technologies and sustainable industrial inputs will be among the key areas supported, ensuring trade finance contributes to both economic development and environmental progress.

AfDB: Facility Will Improve Access and Create Jobs

Malinne Blomberg, Deputy Director General for North Africa and Country Manager for Tunisia at the African Development Bank Group, said the initiative will have direct benefits for people and the economy.

"This facility will enable the African Development Bank to contribute to job creation and improved access for people to essential goods and services," she said.

BIAT: A Bridge to Global Markets

BIAT CEO Elyes Jebir welcomed the first direct cooperation between BIAT and the African Development Bank, describing it as a major boost for Tunisian firms operating internationally.

"Thanks to this guarantee, BIAT is strengthening its role as a trusted partner for Tunisian companies operating internationally by facilitating access to global markets and securing their transactions," Mr Jebir said.

"It serves as a solid bridge linking Tunisian economic actors to the global financial system."

Aligned with Tunisia's National Strategy and AfDB Priorities

The facility is fully aligned with the African Development Bank's 2024–2029 Country Strategy Paper for Tunisia, which prioritises:

• Economic resilience

• Job creation

• Private sector development

With BIAT's strong governance and extensive network of strategic partners, the agreement positions the bank as a central driver of Tunisia's private sector growth.