Trade and Development Bank
The Trade and Development Bank (TDB) is a multilateral, treaty-based development finance institution focused on Eastern and Southern Africa, established on November 6, 1985, as the PTA Bank under the Treaty establishing the Preferential Trade Area for Eastern and Southern African States to promote intra-regional trade, economic integration, and infrastructure development.[1][2] Rebranded as the Trade and Development Bank in 2017, TDB operates with an investment-grade rating and an asset base exceeding USD 10 billion, serving 25 regional member states across organizations such as COMESA, EAC, SADC, IGAD, and IOC, alongside non-regional members like China and Belarus, and institutional shareholders including development finance institutions and sovereign wealth funds.[3][4][5] Headquartered in Bujumbura, Burundi, with principal offices in Ebene, Mauritius, and regional hubs in Nairobi (Kenya), Harare (Zimbabwe), Addis Ababa (Ethiopia), and Kinshasa (Democratic Republic of Congo), TDB provides tailored financial solutions such as short- and long-term loans, equity investments, trade finance guarantees, and non-financial services including advisory and asset management to foster sustainable development in sectors like energy, transport, agribusiness, and manufacturing.[3][6][7] As part of the broader TDB Group—which encompasses subsidiaries like the Trade and Development Fund (TDF) for equity investments, Eastern and Southern African Trade and Logistics (ESATAL) for leasing, and TDB Academy for capacity building—the institution has supported landmark projects, including the financing of East Africa's largest wind farm in 2015, RwandAir's fleet expansion in 2014, and regional infrastructure initiatives since its inception.[3][2]Overview
Establishment and Mandate
The Eastern and Southern African Trade and Development Bank (TDB), originally established as the Preferential Trade Area (PTA) Bank, was founded on November 6, 1985, as an autonomous specialized institution pursuant to Chapter Nine of the Treaty for the Establishment of the Preferential Trade Area for Eastern and Southern African States, which entered into force in 1982 and later evolved into the Common Market for Eastern and Southern Africa (COMESA) Treaty in 1994.[8][9] The Bank's charter was adopted on July 12, 1985, in Bujumbura, Burundi, formalizing its role as a treaty-based entity dedicated to supporting economic cooperation among its founding member states in the region.[8] Over time, the institution has evolved from its initial focus as the PTA Bank into a comprehensive multilateral development finance group, rebranded as the Trade and Development Bank in alignment with its expanded objectives under the amended COMESA framework. Its mandate centers on promoting intra-regional trade, economic integration, and sustainable development across Eastern and Southern Africa, providing financial and technical assistance to member states through financing for trade transactions, infrastructure projects, and private sector initiatives that drive economic growth and complementarity.[8][3] This purpose is explicitly aligned with global and continental agendas, including the United Nations Sustainable Development Goals (SDGs), the African Union's Agenda 2063, and the Paris Agreement on climate change, integrated through a robust environmental, social, and governance (ESG) framework to ensure sustainable outcomes.[3] As a unique treaty-based multilateral institution, TDB operates with full juridical personality, enjoying sovereign immunity from judicial process (except in cases related to its borrowings), immunity of assets from seizure, tax exemptions, and inviolability of its archives and communications, as outlined in Article 43 of its Charter. This status, combined with its preferred creditor treatment and preferential access to member states, enables the Bank to function effectively as a development finance group, mobilizing resources and providing guarantees, equity, and advisory services to sovereigns, financial institutions, and small and medium-sized enterprises without the constraints faced by commercial banks.[8][10]Key Financial and Operational Metrics
As of December 31, 2024, the Trade and Development Bank (TDB) Group reported total assets of USD 11.36 billion, reflecting a 12.4% increase from USD 10.11 billion in 2023, underscoring its growing scale in regional development finance.[11] Shareholders' equity stood at USD 2.26 billion, up from USD 2.20 billion the previous year, supported by retained earnings and reserves of approximately USD 1.66 billion.[11] The bank's operational scope encompasses 47 sovereign and institutional shareholders, with principal offices in Mauritius and Burundi, and regional offices in Kenya, Zimbabwe, Ethiopia, and the Democratic Republic of Congo.[3] It serves over 25 member states across key African regional economic communities, including COMESA, EAC, SADC, IGAD, and the Indian Ocean Commission (IOC), facilitating intra-regional trade and integration.[12] With approximately 193 permanent employees as of 2023, TDB maintains a lean structure focused on high-impact financing.[12] Key performance indicators highlight robust activity: the total loan portfolio reached USD 7.09 billion in 2024, a 2.1% growth from USD 6.95 billion in 2023, comprising USD 4.60 billion in trade finance (up 0.3%) and USD 2.24 billion in project loans (up 5.1%).[11] Financing commitments included available facilities of USD 9.74 billion, with USD 7.71 billion utilized, supporting annual trade volumes exceeding USD 5 billion through instruments like letters of credit (USD 235 million outstanding) and guarantees (USD 6.7 million).[11] Non-financial metrics affirm TDB's impact and recognition. In 2025, the bank received the Bank of the Year award at the African Banker Awards, honoring its inclusive approach to development finance.[13] Additionally, Global Finance bestowed three accolades, including Best Bank for Trade Finance in Frontier Markets, recognizing excellence in sustainable banking and trade facilitation.[14]| Metric | 2024 (USD Billion) | 2023 (USD Billion) | Growth (%) |
|---|---|---|---|
| Total Assets | 11.36 | 10.11 | 12.4 |
| Shareholders' Equity | 2.26 | 2.20 | 3.0 |
| Total Loan Portfolio | 7.09 | 6.95 | 2.1 |
| Trade Finance Portfolio | 4.60 | 4.59 | 0.3 |
| Project Loans | 2.24 | 2.13 | 5.1 |