Trade and Financial Services Round Up: Issue No. 3 of 2026
Kenya
Green Finance and Trade Expansion
Kenya has secured a US $150 million financing package from the African Development Bank (AfDB) in collaboration with KCB Bank Kenya Ltd to scale trade finance and green lending. The funding targets small and medium enterprises and corporates, particularly in renewable energy, sustainable agriculture, and infrastructure projects. A portion of the funds is allocated to transaction guarantees covering letters of credit and other trade instruments, reducing risk and improving cross-border trade flows. The initiative supports Kenya’s commitment to the objectives of the African Continental Free Trade Area (AfCFTA) and to regional economic integration.
(Source: AfDB)
Uganda
Fiscal Shift and Export Gains
Uganda plans to cut external budget support by 84 % next fiscal year, focusing on domestic revenue mobilisation to reduce reliance on foreign financing. This fiscal shift coincides with preparations for crude oil production in 2026, which is expected to boost government revenue. In the trade sector, Uganda’s gold exports surged 76 % to US$5.8 billion in 2025, driven by high global prices and market diversification. These gains strengthened foreign exchange earnings, providing greater stability for Uganda’s financial system. Observers note that balancing fiscal independence with strategic export growth will be key to sustaining economic resilience.
(Source: Reuters)
Tanzania
Infrastructure Investment for Trade
The African Development Bank (AfDB) committed US $2.5 billion to Tanzania for priority infrastructure projects, including roads, railways, and trade corridors. These developments aim to enhance regional connectivity, lower logistics costs, and increase export competitiveness. The investment underscores Tanzania’s strategic position in East African trade routes, supporting both domestic economic growth and cross-border commerce. Enhanced infrastructure is expected to attract private sector investment, strengthen supply chains, and facilitate the flow of goods within the East African Community (EAC). Long-term benefits include reduced transport costs for exporters and improved integration in regional markets.
(Source: EAC)
Rwanda
Digital Payments Pilot
Rwanda and Tanzania have launched a pilot programme linking their national instant payment systems, a step toward regional financial integration under the East African Community (EAC) framework. Supported by the EAC Secretariat and the World Bank, the project enables real-time, low-cost cross-border transactions, reducing friction for traders and SMEs. The system aims to strengthen digital finance, improve access to formal banking, and support regional economic growth. Officials say that if successful, the platform could serve as a model for intra-EAC financial interoperability, improving both trade efficiency and financial inclusion across member states.
(Source: EAC)
Ethiopia
Trade Finance Boost
The African Development Bank (AfDB) provided a US$40 million trade finance guarantee to Dashen Bank to enhance support for imports and exports, with a focus on SMEs and corporates. Guarantees cover letters of credit and other trade instruments, facilitating smoother transactions and reduced risk. The program aims to strengthen Ethiopia’s participation in regional and continental markets, improve supply chain reliability, and expand access to trade finance for smaller enterprises. Analysts highlight that such initiatives are critical for boosting trade capacity and positioning Ethiopia for greater integration with East African and African Continental Free Trade Area markets.
(Source: AfDB)
Sudan
Conflict Hampers Financial Services
Sudan’s ongoing civil conflict continues to disrupt trade and financial services, restricting the growth of formal banking and investment activity. Humanitarian agencies report that credit access, trade finance, and infrastructure financing remain severely constrained, limiting economic recovery. Multilateral institutions caution that continued instability could further weaken private sector confidence and trade facilitation. Financial analysts note that even routine domestic transactions face risks, and foreign investors remain hesitant due to uncertainty. While the government has announced limited regulatory reforms, security conditions remain the major obstacle to meaningful growth in Sudan’s financial and trade sectors.
(Source: Sudan Tribune)
Somalia
National Securities Exchange Launch
Somalia is preparing to launch its National Securities Exchange (NSES) in early 2026, aiming to attract up to US$2 billion in diaspora investment. The exchange plans initial public offerings in sectors including telecommunications, energy, and infrastructure. By converting diaspora remittances into productive investment, the NSES aims to deepen capital markets, attract foreign direct investment, and stimulate economic growth. Officials expect the exchange to provide safer, more structured channels for savings while enhancing private-sector funding opportunities. The initiative is part of broader efforts to rebuild Somalia’s financial infrastructure and trade competitiveness after decades of instability.
(Source: The East African)
