AfDB Approves $20M Trade Finance Facility for Mozambique’s BCI Bank

The African Development Bank Group (AfDB) has approved a $20 million Trade Finance Transaction Guarantee facility for Banco Comercial e de Investimentos S.A. (BCI), Mozambique's largest commercial bank, to expand access to trade finance for small and medium-sized enterprises (SMEs).

The three-year facility is designed to help address Mozambique's widening trade finance gap by providing up to 100% guarantee coverage to international confirming banks for trade finance transactions issued by BCI.

With transaction rollovers, the facility is expected to support up to $120 million in trade flows over the next three years, boosting the ability of local businesses to import essential goods and expand export opportunities.

Strengthening Trade Finance for Local Businesses

The initiative aims to strengthen BCI's capacity to support Mozambican enterprises—particularly SMEs—engaged in international trade.

Trade finance plays a critical role in enabling businesses to purchase raw materials, machinery, and other inputs while facilitating the export of goods to international markets.

The new guarantee facility will reduce risk for international banks, encouraging them to confirm letters of credit and other trade finance instruments issued by BCI.

African Development Bank Country Manager for Mozambique Rômulo Corrêa said the facility leverages the Bank's strong credit standing to unlock additional liquidity in Mozambique's financial system.

"This Transaction Guarantee leverages the Bank's AAA rating to unlock additional capital within Mozambique's financial system, supporting broader market stability and liquidity," Corrêa said.

"By de-risking trade transactions, the African Development Bank is enabling BCI to redirect scarce foreign currency resources towards supporting the businesses that need it most—SMEs and local corporates driving economic growth."

Supporting SMEs and Women-Owned Businesses

The facility will enhance BCI's ability to finance import and export transactions for local companies, particularly SMEs that often struggle to access international trade finance.

BCI Chief Executive Officer Francisco Pinto Machado da Costa said the partnership with the African Development Bank will help strengthen the bank's support for the real economy.

"This partnership with the African Development Bank marks an important step in strengthening BCI's support to the real economy," da Costa said.

"The Bank remains committed to expanding trade finance for SMEs and women-owned businesses, in line with its broader objective of promoting inclusive and sustainable growth."

By easing financing constraints, the facility is expected to boost economic activity and improve the delivery of goods and services across Mozambique.

Supporting Regional Trade and Integration

The initiative also supports the African Development Bank's broader development strategy, particularly its First Cardinal Point—Unlock Africa's Capital Power, which focuses on mobilizing financial resources for economic growth across the continent.

The transaction guarantee aligns with the Bank's Private Sector Development Strategy, which prioritizes improved access to finance for businesses and expanded private-sector investment.

Officials say the facility will also contribute to regional economic integration by facilitating trade along Mozambique's strategic transport corridors that connect landlocked southern African countries to global markets through Mozambican ports.

By strengthening trade finance capacity, the partnership between AfDB and BCI is expected to play a key role in supporting SMEs, improving financial liquidity and expanding cross-border trade opportunities in southern Africa.