The African Development Bank (AfDB) has approved a $4 million trade finance transaction guarantee for Access Bank Sierra Leone Limited (ABSL).
The initiative aims to bolster small and medium-sized enterprises (SMEs) and local businesses in Sierra Leone by addressing critical financing gaps, with a focus on women-led enterprises and key economic sectors.
The AAA-rated guarantee will provide full risk coverage for international confirming banks on trade finance transactions conducted by ABSL on behalf of SMEs and local firms. The facility is designed to enhance the importation of essential consumer goods such as rice, cereals, and cooking oil, strengthening strategic value chains and supporting Sierra Leone’s economic resilience.
The transaction is expected to facilitate $36 million in trade over three years, aligning with the African Continental Free Trade Area (AfCFTA) objectives of boosting intra-African trade.
“This facility represents a pivotal moment for Sierra Leone’s private sector development,” said Lamin Drammeh, Head of Trade Finance at AfDB. “By addressing critical financing gaps, we are enabling SMEs to participate more actively in regional and global trade, contributing to job creation and improved livelihoods.”
Ganiyu Sanni, Managing Director of ABSL, noted that the guarantee will expand the bank’s trade finance capacity, particularly in sectors like agribusiness. “This facility will support our issuances of trade finance transactions in critical sectors such as the importation of strategic soft commodities and trading of intermediate goods,” he said.
The AfDB launched the Transaction Guarantee program in 2021 to support African banks with trade finance instruments, including letters of credit, trade loans, and promissory notes. It leverages the Bank’s “AAA” credit rating to mitigate country and counterparty risks, enabling local banks to access financing lines previously unavailable or constrained.
This initiative underscores AfDB’s commitment to strengthening Africa’s financial infrastructure and fostering sustainable economic growth in transition states like Sierra Leone.
