The African Development Bank Group and the Banque Internationale Arabe de Tunisie (BIAT) have signed a $50 million Trade Finance Guarantee Facility to strengthen trade finance and support Tunisia’s private sector.

The agreement, signed on Friday at BIAT’s headquarters in Tunis, is expected to support the activities of Tunisian businesses, create jobs, and improve access to essential goods by strengthening supply chains and boosting local production. The signing underscores the African Development Bank’s commitment to supporting broader government efforts to enhance the financial sector.

The facility will primarily support the importation of industrial inputs, production machinery, telecommunications equipment and renewable energy technologies essential to Tunisia’s industrialisation. It will also facilitate the confirmation by international banks of trade finance instruments issued by BIAT, including letters of credit.

With a tenor of three years, the facility will benefit large corporations as well as small and medium-sized enterprises, including women-led businesses. Eligible transactions will focus on low-carbon projects, in line with Tunisia’s climate objectives. Agro-industry and light manufacturing are among the priority sectors, alongside the importation of essential goods to meet domestic demand.

“This facility will enable the African Development Bank to contribute to job creation and improved access for people to essential goods and services,” said Malinne Blomberg, Deputy Director General for North Africa and Country Manager for Tunisia at the African Development Bank Group.

Under the agreement, the African Development Bank will provide guarantees up to 100% to international banks, facilitating the confirmation of letters of credit and other trade finance instruments issued by BIAT on behalf of Tunisian companies.

Elyes Jebir, Chief Executive Officer of BIAT, welcomed this first direct cooperation with the African Development Bank. “Thanks to this guarantee, BIAT is strengthening its role as a trusted partner for Tunisian companies operating internationally by facilitating access to global markets and securing their transactions. It serves as a solid bridge linking Tunisian economic actors to the global financial system,” he said.

With its strong governance, recognised local expertise, and extensive network of strategic partners, BIAT continues to play a central role in supporting Tunisia’s economy and private sector development.

The facility fully aligns with the African Development Bank’s 2024–2029 Country Strategy Paper for Tunisia, which prioritises economic resilience, job creation, and private sector development.

Source : AfDB