Munich Re has committed $1 billion in risk-sharing support for Africa Finance Corporation’s (AFC) trade-finance lending through a new arrangement designed to widen bank financing in 11 African countries.
AFC said the first phase includes 38 financial institutions. The program covers trade loans, commercial letters of credit and trade guarantees used to finance imports and exports. AFC’s announcement does not name the participating countries or institutions. It describes the $1 billion as risk-sharing support, not as loans already disbursed.
Under the Unfunded Managed Debt Mobilisation Program, Munich Re will assume an agreed share of qualifying transactions within parameters set in advance, while AFC keeps part of each risk. AFC said the arrangement lets eligible deals proceed under an established framework instead of negotiating risk sharing separately for each transaction.
Transactions can run for up to 12 months. AFC says capacity becomes available again as existing transactions mature or are repaid, allowing it to support new eligible trade-finance deals. AFC identifies African banks’ need for liquidity to support trade within the continent and with international markets as a reason for the program. It says the arrangement is intended to expand financing capacity while making more efficient use of AFC’s own capital.
The new structure builds on a relationship that began in 2018, when AFC and Munich Re shared risk one transaction at a time. The two completed several transactions under that approach, including two in 2026, according to AFC.
AFC said the Munich Re arrangement is expected to be the first part of a broader managed debt mobilization platform, through which other investors may provide funding or share risk. AFC said it was discussing funding through the platform with African and global institutional investors, but did not identify prospective participants or give a timeline.
AFC and Munich Re also plan to assess whether the arrangement should cover additional financial instruments or sectors. AFC did not give a date for that review.
