AfDB and Habib Bank AG Zurich Partner to Close Africa's Trade Finance Gap

The partnership operates under the AfDB’s Trade Finance Transaction Guarantee Program, offering coverage for up to 100% of non-payment risks on eligible trade instruments. By backing letters of credit issued by African financial institutions, the program provides the security necessary for Habib Bank to expand its support for local businesses. This mechanism is designed to bolster confidence in markets where correspondent banking limits often stifle otherwise viable commercial opportunities.

Alex Mubiru, the AfDB’s Director General for East Africa, emphasized that trade relies as much on financial security as it does on the movement of goods. Habib Bank AG Zurich Kenya CEO Asim Basharullah noted that the bank’s global network across four continents will serve as a bridge to connect African enterprises with international markets. This collaboration addresses a critical shortfall, as the AfDB’s 2025 Trade Finance Report estimated Africa’s trade finance gap at $92 billion in 2024. By sharing risks, the institutions aim to provide small and medium-sized enterprises with the essential banking support required to scale their operations.