African Development Bank and BIAT Ink $50M Guarantee Facility to Boost Tunisian Trade and Support SMEs

The African Development Bank Group (AfDB) and Banque Internationale Arabe de Tunisie (BIAT) have signed a $50 million Trade Finance Guarantee Facility to bolster Tunisia’s private sector, the AfDB announced on February 7, 2026. The agreement is designed to strengthen the import and export activities of local businesses by enhancing their access to trade finance instruments.

Under the three-year facility, the AfDB will provide guarantees of up to 100% to international confirming banks. This move is set to mitigate payment and country risks, thereby encouraging global financial institutions to confirm letters of credit and other trade finance instruments issued by BIAT on behalf of Tunisian companies. According to reports from BCR Publishing and Financial Afrik, this will unlock greater participation from international banks in Tunisia’s trade ecosystem.

The facility is expected to have a broad impact, benefiting both large corporations and, crucially, small and medium-sized enterprises (SMEs), with a specific focus on supporting women-led businesses. The primary sectors targeted are agro-industry and light manufacturing. The agreement will facilitate the import of essential goods, industrial inputs, production machinery, and equipment for telecommunications and renewable energy, which are vital for Tunisia’s industrialization. In line with Tunisia’s climate objectives, eligible transactions will also give priority to low-carbon projects. This initiative is part of the AfDB’s broader 2024–2029 Country Strategy Paper for Tunisia, which prioritizes economic resilience and private sector development.