Summary:

On 30 June 2025, the Board of Directors of the African Development Bank Group approved a $50 million trade finance guarantee facility for the Banque Internationale Arabe de Tunisie (BIAT) during a meeting in Abidjan. The deal came as as part of the mutual goals of the AfDB and BIAT to boost foreign trade and enhance support for Tunisian businesses. 

This deal, which functions as a trade transaction guarantee, will primarily back imports of industrial material, machinery, and equipment for telecommunications and renewable energy, aligning with Tunisia’s ongoing industrialization efforts. While the focus is on the agro-industrial and light manufacturing sectors, the guarantee will also help facilitate short-term imports of essential goods to meet immediate domestic needs. 

According to AfDB officials Ahmed Attout and Malinne Blomberg, the three-year loan deal will support large companies and SMEs, including women-led businesses. Additionally, the facility, which covers up to 100 percent of trade instruments, such as letters of credit, aims to ease the import of vital production materials and equipment, consequently driving industrial growth, job creation, and economic diversification in Tunisia. 

BIAT CEO Elyes Jebir welcomed the deal as a strategic move aligned with the bank’s goal of expanding Tunisia’s role in international trade and strengthening its private sector.  

Outlook: 

The $50 million guarantee provided by the AfDB will strengthen BIAT’s ties with international banking partners and expand its capacity to support Tunisian companies involved in global cross-border trade. 

The agreement also reflects a broader effort to position the banking sector as a driver of industrial growth and economic modernization. The ability to effectively leverage complex credit tools with the support of the Tunisian banking system will be an essential tool for Tunisian businesses to grow and compete on the global market and for foreign investors to thrive within the Tunisian market. 

However, while it may bring short-term benefits by easing access to trade finance and boosting productivity, it also carries risks if firms struggle to repay or if imports grow faster than exports. Careful oversight and targeted support will be key to ensuring long-term success. 

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