The African Export and Import Bank (Afreximbank) has agreed to provide African Trade Facilitation Programme (AFTRAF) facilities totalling US$95 million in favour Banque Banque de Credit de Bujumbura (BCB) and Commerciale du Burundi (Bancobu) to support trade finance in Burundi.

Credit lines provided through AFTRAF can be used to confirm letters of credit (L/Cs), issue guarantees and provide irrevocable reimbursement undertakings.

Banque de Credit de Bujumbura

Afreximbank will provide a US$40 million AFTRAF facility to BCB, a full-service bank and in the top 3 in both credits and deposits in Burundi.

The deal was signed the third Intra-African Trade Fair, at which Afreximbank signed financing and other agreements valued in excess of one billion US dollars with banks and other entities across Africa.

Banque Commerciale du Burundi

Bancobu, which is based in Burundi's economic capital, Bujumbura, will benefit from a US$45 million AFTRAF facility.

Earlier this year the African Development Bank agreed to provide a trade finance transaction guarantee facility to Bancobu. Under that facility, AfDB will provide up to a 100 per cent guarantee to participating banks for the non-payment risk arising from the confirmation of L/Cs and similar trade finance instruments issued by Bancobu.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.