AfDB, Bank of Africa Benin Seal €15M Deal to Boost Trade Finance

Pan-African finance institution the African Development Bank (AfDB) and the Bank of Africa Benin (BOA-Benin) have signed a €15 million agreement to strengthen trade finance in Benin.

Structured as a three-year transaction guarantee facility, the agreement enables BOA-Benin to issue trade instruments – such as Letters of Credit – with up to 100% risk coverage by the AfDB.

The initiative targets both large businesses and small- and medium-sized enterprises, including women-led ventures. Key sectors include agribusiness and light manufacturing, though the facility will also support the import of essential goods to meet short-term domestic demand.

In alignment with the AfDB’s environmental sustainability goals, eligible projects must demonstrate low climate risk and minimal greenhouse gas emissions.

The partnership marks a significant step in the AfDB’s broader strategy to catalyze private sector growth in Benin, complementing government efforts to modernize the financial sector and stimulate industrial development. By enhancing access to trade finance, the facility is expected to drive economic resilience and long-term growth across the country.