The facility, which marks the first trade finance partnership between AfDB and Access Bank Zambia, is projected to facilitate up to $240 million in trade transactions over the next five years.

The agreement forms part of the African Development Bank’s Trade Finance Program, which has supported more than $13.8 billion in trade across 129 financial institutions on the continent since its launch in 2013.

Access to trade finance remains one of the biggest obstacles facing African businesses, particularly SMEs.

Many firms struggle to secure letters of credit and other financial instruments required to import goods, purchase raw materials, or expand into export markets.

The African Development Bank estimates that Africa faces an annual trade finance shortfall of between $100 billion and $120 billion, with smaller businesses bearing the greatest burden.

In Zambia, SMEs play a central role in the economy, accounting for roughly 70% of gross domestic product and supporting nearly 88% of jobs.

Despite their importance, many entrepreneurs continue to face difficulties obtaining affordable financing needed to engage in international trade.

Under the arrangement, the African Development Bank will provide up to 100% risk coverage to international banks that confirm trade finance transactions issued by Access Bank Zambia.

The guarantee is expected to increase confidence among foreign financial institutions and enable Access Bank Zambia to expand its trade finance portfolio without facing the collateral constraints that have traditionally limited lending in the sector.

African Development Bank Country Manager for Zambia, Raubil Olaniyi Durowoju, said the initiative would have a direct impact on businesses operating in key sectors of the economy.

“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,” Durowoju said.

“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 facility is expected to support the importation of products such as agricultural inputs, manufacturing materials, solar energy equipment, and consumer goods while also helping local exporters access regional and international markets.

Increased trade activity could further contribute to government revenues through taxes and import duties generated by a more active private sector.

The agreement also includes a focus on women-owned businesses. Women in Zambia are heavily involved in agriculture, informal commerce, and value chains where access to finance remains particularly limited.

To address this gap, the transaction may be complemented by technical assistance from the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative.

The support is expected to help Access Bank Zambia integrate gender-focused lending practices and dedicate part of the guaranteed trade portfolio to women-led enterprises.

Access Bank Zambia Managing Director Iheanyi Nwogu described the partnership as a significant step in strengthening the bank’s trade finance operations.

“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,” Nwogu said.

“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.”

Beyond the immediate financial support, the guarantee sends an important signal to international markets.

By reducing perceived risks associated with Zambia-originated trade transactions, the facility is expected to encourage greater participation from global banks and investors, helping local businesses become more integrated into regional and international supply chains.

The initiative comes at a time when African countries are seeking to boost intra-African trade under the African Continental Free Trade Area (AfCFTA), which aims to strengthen economic integration and expand market opportunities for businesses across the continent.

Improved access to trade finance is widely viewed as one of the key requirements for African firms to take full advantage of the opportunities created by the agreement.