The African Development Bank (AfDB) has approved a $50 million trade finance guarantee facility for Tunisia’s Banque Internationale Arabe de Tunisie (BIAT), in a move designed to strengthen trade flows, bolster economic resilience, and accelerate industrial development in the North African nation.
The three-year facility will help finance the import of critical inputs—including industrial machinery, agro-processing equipment, telecommunications infrastructure, and renewable energy systems—aligned with Tunisia’s broader industrialization strategy. The initiative also supports the import of essential goods for immediate domestic needs, particularly amid ongoing regional economic headwinds.
Facilitating Trade and Private Sector Inclusion
Through the guarantee, AfDB will offer up to 100% coverage to international confirming banks on trade finance instruments issued by BIAT. This includes letters of credit and related mechanisms used by local corporates and SMEs, with a strong emphasis on inclusion of women-led enterprises.
“This facility will enable BIAT to provide critical trade support to businesses in Tunisia, facilitating access to inputs and capital goods essential to industrial output and job creation,” said Lamin Drammeh, Manager of AfDB’s Trade Finance Division.
Malinne Blomberg, AfDB’s Deputy Director General for North Africa and Country Manager for Tunisia, emphasized the facility’s role in catalyzing private sector development:
“By facilitating the import of equipment and technology that underpins manufacturing and agro-industrial growth, we aim to drive economic diversification and long-term competitiveness.”
BIAT Deepens Trade Finance Mandate
For BIAT, this marks the bank’s first direct trade finance partnership with the African Development Bank, reinforcing its commitment to expanding international trade financing capabilities.
“The facility aligns with our core strategy to elevate trade finance as a central pillar of our operations,” said Elyes Jebir, CEO of BIAT. “It allows us to broaden our support for Tunisian enterprises and enhance their integration into global value chains.”
BIAT is one of Tunisia’s largest universal banks, offering services across retail, corporate, asset management, insurance, and private equity. With a nationwide network of 206 branches and over 2,400 institutional and corporate clients, it plays a pivotal role in the country’s trade finance ecosystem.
A Regional Blueprint for Trade Facilitation
Launched in 2021, the AfDB Trade Finance Guarantee Program aims to de-risk and unlock trade flows by providing coverage on short-term trade finance instruments issued by African commercial banks. The program supports instruments such as confirmed LCs, trade loans, avalized drafts, and promissory notes—helping to address the continent’s persistent trade finance gap, particularly among SMEs.
Key Takeaway for Banking Professionals
As African economies look to deepen industrial capacity and economic diversification, strategic partnerships like this serve as catalysts for trade-led growth, particularly in frontier markets with rising SME demand and limited credit access. The BIAT-AfDB facility may also serve as a blueprint for similar collaborations across the continent.
