AfDB expands trade finance support with Ghana International Bank under Transaction Guarantee facility

The African Development Bank signed a confirmation agreement with Ghana International Bank under its Transaction Guarantee facility.
The agreement establishes GHIB as an alternative to Western correspondent banks that have withdrawn from frontier African markets.
The Transaction Guarantee facility covers up to 100% of non payment risk for confirming banks on letters of credit issued by local African banks.
AfDB provides guarantee coverage within 48 hours under the facility.
Since 2013, AfDB’s Trade Finance Program has supported more than 13.8 billion dollars in trade flows through 129 partner financial institutions.
The partnership focuses on low income African markets including Sierra Leone, The Gambia, Guinea, and Liberia.
These markets have experienced reduced trade finance support after major international banks withdrew from the region.
GHIB will confirm transactions issued by local banks to help improve access to international capital.
The agreement supports regional integration efforts and the implementation of the African Continental Free Trade Area.