The Board of Directors of the African Development Bank has approved a $20 million Trade Finance Transaction Guarantee for Access Bank Zambia Limited, a move that will significantly expand access to trade finance for small and medium enterprises (SMEs) across Zambia.
This marks the first transaction between the African Development Bank and Access Bank Zambia, and forms part of the Bank’s broader Trade Finance Program. Since 2013, the program has supported over $13.8 billion in trade volumes across 129 financial institutions throughout the continent.
The facility is expected to support up to $240 million in trade volumes over its five-year life, benefiting Zambian businesses that have long struggled to participate meaningfully in regional and international trade.
Despite contributing 70% of Zambia’s GDP and providing 88% of employment, small and medium enterprises face a chronic shortage of affordable trade finance. Without confirmed letters of credit, small businesses cannot import essential inputs, from agricultural equipment to fast-moving consumer goods, or unlock working capital tied up in foreign collateral requirements. According to African Development Bank estimates, the continent’s trade finance gap is around $100–$120 billion annually, with SMEs bearing the most disproportionate impact.
African Development Bank Country Manager for Zambia, Raubil Olaniyi Durowoju, said: “Trade finance is not an abstract financial instrument. It is what allows a smallholder farmer to import certified seed, or a local manufacturer to source components and export finished goods. By backing Access Bank Zambia with our AAA guarantee, we are giving Zambian businesses a seat at the table in regional and global trade, and that translates directly into jobs, incomes, and economic resilience.
The African Development Bank’s Transaction Guarantee will provide up to 100% risk cover to international confirming banks on trade finance instruments issued by Access Bank Zambia. The facility effectively derisks the trade instruments issued by Access Bank Zambia, enabling the bank to scale up its trade finance offerings without the collateral drag that has historically constrained the market.
For SMEs, the facility means greater access to letters of credit for importing agricultural inputs, manufactured goods, solar panels, and other commodities critical to Zambia’s productive economy, as well as improved support for export-oriented businesses looking to reach regional markets. By easing trade flows, the facility will also generate increased tax revenue for the Zambian government through import duties and corporate taxes from a more active business sector.
The facility carries an important gender dimension. Women in Zambia are disproportionately concentrated in subsistence farming, informal trade, and agriculture value chains – precisely the sectors where trade finance gaps are most acute. The guarantee will be complemented by a potential technical assistance facility from the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative, which will support Access Bank Zambia in embedding a gender lens in its lending review process and in dedicating a portion of the guaranteed trade book to women-led enterprises.
“Trade finance is a cornerstone of Access Bank Zambia’s business, and the African Development Bank’s AAA-rated guarantee will be instrumental in accelerating growth within this segment. Through this partnership, we will expand support for businesses accessing cross-border trade, deepening trade flows and contributing to Zambia’s long-term economic growth,” said Access Bank Zambia’s Managing Director, Iheanyi Nwogu.
Beyond its direct impact, the facility serves as a signal to international confirming banks that Zambia-originated trade is a creditworthy proposition- helping to unlock greater participation from global financial markets.