Djibouti: The African Development Bank approves a roughly $11 million trade finance facility to Intercontinental Investment Bank Djibouti to support SMEs and women-led businesses

 

On Wednesday, in Abidjan, the Board of Directors of the African Development Bank Group (AfDB) approved a three-year trade finance facility of $10.75 million in favour of Intercontinental Investment Bank Djibouti (IIB Djibouti). The facility has three components including a $8 million Trade Finance Line of Credit, a $2 million Trade Finance Transaction Guarantee and a $750,000 AFAWA’s grant from the Women Entrepreneurs Finance Initiative (We-Fi).

This facility will support the Djiboutian economy by facilitating imports of equipment related to renewable energy, manufacturing, and telecommunications sectors. It will also support the importation of essential goods to meet short-term local demand. Specifically, the facility will benefit Micro, Small and Medium Enterprises as well as large local companies, including those owned and/ or led by women. Targeted projects will be those least vulnerable to climate risks and minimal greenhouse gas emissions.

“We are pleased to partner with IIB Djibouti by providing crucial financial resources that will strengthen its trade finance offering to the benefit of SMEs and women-led businesses. The Trade Finance Transaction Guarantee will enable the AfDB to provide up to 100% guarantees to confirming banks, helping to secure the confirmation of letters of credit and other similar trade finance instruments issued by IIB Djibouti on behalf of Djiboutian SMEs, while the Line of Credit will augment this by providing critical liquidity,” highlighted Lamin Drammeh, Trade Finance Division Manager at the AfDB.

Welcoming this relationship with the AfDB, Papa Demba Diop, CEO, IIB Djibouti, stated: “This facility marks more than a financial milestone – it is the beginning of a long-term partnership. This premiere facility will catalyze inclusive growth, empowering our entrepreneurs, especially women, to transform local ambition into regional impact. In a country where over 70% of employment is generated by SMEs, yet access to trade finance remains one of their biggest hurdles, this facility empowers us to close that gap. We will be able to translate financial instruments into real-world impact - supporting women-led enterprises, driving industrial innovation, and building a more resilient Djiboutian economy from the ground up.”

 

About the African Development Bank Group’s Trade Finance Guarantee instrument:

The trade finance guarantee is one of the instruments developed by the AfDB to support commercial banks across Africa. Launched in 2021, it covers a variety of trade finance instruments, including confirmed letters of credit, and allows AfDB to provide up to 100% guarantee to Confirming Banks for the non - payment risk taken on the trade transactions of Issuing banks in Africa. The facility is available to all issuing banks registered and operating in Africa that have successfully completed the Bank’s due diligence process.

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