Africa Finance Corporation (AFC) and German reinsurer Munich Re announced a $1 billion risk-sharing programme on Tuesday, 27 October 2026, to support trade finance provided by African banks. The figure represents committed risk-cover capacity, not $1 billion in new loans already disbursed.
The first phase is designed to reach 38 financial institutions across 11 African countries. It covers letters of credit, trade loans and trade guarantees that banks use to support importers and exporters. AFC will retain part of the risk on each transaction, while Munich Re will assume a share of eligible exposures under agreed parameters.
Cover that can be reused as transactions mature
The partners have defined risk conditions and limits in advance. Eligible transactions can therefore be covered without negotiating a separate risk-sharing arrangement every time, an approach intended to speed up financing decisions. The trade-finance operations covered have maturities of up to twelve months.
As those transactions are repaid or mature, capacity can be released for new financing. The $1 billion is therefore a reusable risk-sharing limit, not a measure of money already lent or a forecast of how many businesses will ultimately benefit.
From individual transactions to a standing framework
AFC and Munich Re have worked together on loan risk-sharing since 2018, including two individual transactions completed in 2026, according to the partners’ announcement. The new arrangement replaces deal-by-deal negotiations with a standing programme intended to strengthen banks’ ability to finance trade within Africa and with other markets.
It is also part of AFC’s wider managed debt mobilisation platform, which aims to bring in other institutional investors as lenders or risk partners. For participating banks, the practical prospect is more room to issue guarantees and extend trade loans, although the announced ceiling should not be mistaken for funds already deployed.