The African Export-Import Bank (Afreximbank) has extended a $10 million financing facility to Tanzania’s Azania Bank to improve access to funding for small and medium-sized enterprises (SMEs) operating across the country’s export value chains.
The facility will enable Azania Bank to provide financing to eligible businesses in agriculture, manufacturing, trade, technology, logistics and value-added exports. Funding will support working capital requirements, business expansion, asset acquisition and pre- and post-export activities.
The agreement forms part of Afreximbank’s Export SME Development Programme, which combines financing with technical assistance to help businesses strengthen their export capabilities. Support includes export readiness training, financial management guidance, market linkages and assistance with digitalisation.
Closing Tanzania’s SME Financing Gap
Limited access to finance remains a significant challenge for smaller businesses seeking to expand production, invest in equipment and enter international markets. Through the facility, Afreximbank aims to help address this funding gap while strengthening the contribution of Tanzanian SMEs to the country’s export economy.
Oluranti Doherty, Afreximbank’s managing director for export development, said SMEs were central to Africa’s productive economy and played an important role in industrialisation, value addition and trade-led growth.
She noted that many businesses continued to face barriers to financing, market access and the technical support required to expand their operations.
Yahaya Mbanka, director of business development at Azania Bank, said the facility would strengthen the bank’s ability to finance Tanzanian SMEs, enabling them to grow their businesses, invest in productive capacity and pursue export opportunities.
Supporting AfCFTA Trade Opportunities
The financing is also intended to help Tanzanian businesses take advantage of opportunities under the African Continental Free Trade Area (AfCFTA), which aims to expand intra-African trade by improving access to markets across the continent.
By channelling funds through a local banking institution, Afreximbank can reach smaller enterprises that may struggle to access international trade finance directly. The combination of capital and business support is designed to help eligible companies improve their operational capacity and participate more effectively in regional and international supply chains.
The facility forms part of Afreximbank’s wider efforts to promote export development, industrialisation and trade financing across Africa. For Tanzania, the initiative could help strengthen SME participation in export markets, support value-added production and encourage greater cross-border commercial activity.