The Board of Directors of the African Development Bank Group has greenlit a $25 million trade finance guarantee facility for Bank of Africa Madagascar, aimed at giving a major push to the country’s industrial sector. Approved on March 26, 2025, in Abidjan, the initiative is designed to support the importation of critical supplies, including raw materials, production machinery, and telecommunications equipment.
The effort primarily targets the agro-industrial and light manufacturing sectors, with the goal of driving Madagascar’s broader industrialization. By improving access to vital production tools, the facility is expected to enhance productivity and stimulate economic growth in one of the island nation’s most crucial sectors.
But the impact of this support is set to go beyond factories and production lines. The facility also plays a strategic role in addressing food and nutritional security by easing the import of essential goods. In doing so, it helps stabilize supply chains and ensures consistent access to basic necessities for the population.
According to Lamin Drammeh, head of the Trade Finance Division at the African Development Bank, the facility will allow the bank to provide up to 100% guarantees to confirming banks. This will make it easier for Bank of Africa Madagascar to issue trade finance instruments—like letters of credit—on behalf of both large local companies and small to mid-sized enterprises.
Adam Amoumoun, the Bank’s country manager for Madagascar, noted that this operation directly supports the Bank’s 2022–2026 strategy for the country. That roadmap emphasizes transforming agriculture and strengthening the manufacturing base, making this facility a key piece of the puzzle in achieving those goals.
Ameziane Jamal, CEO of Bank of Africa Madagascar, welcomed the launch of this new collaboration, calling it a milestone in the bank’s growing relationship with the African Development Bank. He said the partnership aligns seamlessly with Bank of Africa Group’s broader strategy, which prioritizes international trade finance as a core pillar of its operations across the continent. He added that this support will enable the bank to better serve a diverse range of businesses within Madagascar’s economy.
The facility will run for three years and is open to both large firms and small and medium-sized enterprises, with a particular focus on those led by women. The projects supported under this initiative are also selected with sustainability in mind, favoring businesses that are less exposed to climate risks and that have a minimal carbon footprint.
