Afreximbank Extends $10mln Facility to Tanzania’s Azania Bank for SME Exports

The African Export-Import Bank has provided a 10 million US dollars credit facility to Tanzania’s Azania Bank to finance small and medium-sized businesses involved in export-oriented activities, in a move aimed at easing one of the main constraints on their expansion into regional markets.

The facility, extended under Afreximbank’s Export SME Development Programme, will be on-lent by Azania Bank to businesses seeking working capital and medium-term funding for expansion, equipment purchases and export-related operations.

Eligible borrowers will include firms in agriculture, manufacturing, logistics, technology, trade and other value-added activities. The financing is intended to help businesses increase productive capacity and participate in cross-border supply chains, including those emerging under the African Continental Free Trade Area.

The arrangement goes beyond lending. Afreximbank will provide participating businesses with export-readiness training, financial-management advice, market-linkage support and assistance with digitalisation.

Access to finance remains a constraint for many African SMEs, limiting their ability to invest, scale production and meet the requirements of export markets. For smaller Tanzanian businesses, the facility is intended to combine credit with technical support as they seek to enter or expand within regional value chains.

“SMEs are the backbone of Africa's productive economy and are critical to driving industrialisation, value addition and trade-led growth,” said Oluranti Doherty, Afreximbank’s managing director for Export Development.

Yahaya Mbanka, director of Business Development at Azania Bank, said the facility would increase the bank’s capacity to finance SMEs investing in productive assets and pursuing export opportunities.

The financing comes as Tanzania seeks to increase domestic production, add value to exports and deepen its integration into regional trade. Afreximbank said the facility supports its mandate to promote intra-African trade and industrial development.

Source: FSX Business News