TANZANIA - Bank of Africa Limited (BOAT)

The proposed Transaction Guarantee (TG) facility will have an uncommitted limit of USD 7.5 million and is intended to support the trade finance activities of BOAT in Tanzania. The Facility will allow AfDB to provide up to 100% coverage to Confirming Banks (CBs) for the non-payment risk on letters of credit and other similar trade finance instruments originated by BOAT. The proposed facility limit of up to USD 7.5 million is uncommitted. This gives the Bank the flexibility to amend or withdraw the limit as it sees fit without notice or consequence. The facility will be deployed more flexibly to specific target segments such as SMEs (including those owned by women) and local corporates in the tradable sector, and manufacturing enterprises in Tanzania. It’s envisaged that the facility will also actively support more intra-Africa trade between Tanzania, SADC, East Africa, and the rest of Africa. By providing the proposed TG, BOAT will be able to support the import of essential commodities and equipment.