Munich Re and Africa Finance Corporation (AFC) have launched a $1 billion credit risk-sharing programme intended to expand Africa trade finance capacity. The first phase targets 38 financial institutions across 11 African markets.

Key Takeaways

  • Munich Re will automatically assume a portion of eligible AFC transaction risk within pre-established limits.
  • The initial scope covers letters of credit, trade-related loans, and trade confirmation and payment guarantees.
  • Capacity is released for new investments as individual transactions mature.

How the Africa trade finance facility works

The unfunded managed debt mobilisation programme establishes risk limits and parameters in advance, allowing Munich Re to take on a portion of eligible AFC transactions. AFC retains a share of the risk in each deal.

The revolving structure is designed to give African banks faster access to trade finance resources. As transactions mature, capacity becomes available for new investments. The announcement did not specify how much of the $1 billion capacity had already been deployed.

Initial scope and potential expansion

The first deployment phase focuses on instruments used in cross-border trade: commercial letters of credit, trade-related loans, and trade confirmation and payment guarantees. The announcement did not identify the 11 markets or the 38 institutions targeted.

Munich Re and AFC said the portfolio would be reviewed periodically, with provisions to add credit instruments and economic sectors as it matures. They did not give a timetable for any expansion.

Partnership moves to a standing facility

The two organisations have worked together on individual credit-risk syndications since 2018, including two bilateral risk-sharing deals earlier in 2026. The new programme turns that transaction-by-transaction relationship into a standing facility.

The facility also anchors AFC’s broader Managed Debt Mobilisation Program, through which other investors can provide funding or share risk alongside AFC. AFC is discussing potential funding with other African and global institutional investors; no additional commitments were specified.

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