The World Bank’s Multilateral Investment Guarantee Agency (MIGA) and Deutsche Bank have launched a €1 billion ($1.17 billion) trade finance guarantee programme aimed at boosting access to credit in developing and conflict-affected countries.
The three-year initiative will allow MIGA to provide guarantees covering the risk of non-payment on eligible trade finance transactions originated by Deutsche Bank.
By reducing the risks faced by commercial lenders, the programme is expected to unlock additional financing for businesses that often struggle to secure affordable trade credit because of political instability, conflict or fragile economic conditions.
The guarantee framework will focus on frontier and emerging markets across Africa, the Middle East, Asia, Latin America and parts of Eastern Europe. Priority will be given to low-income and conflict-affected economies where access to international trade finance remains severely constrained despite strong demand from local businesses.
Trade finance plays a critical role in facilitating cross-border commerce by providing payment guarantees for exporters and importers. However, banks have increasingly reduced their exposure to higher-risk markets because of geopolitical uncertainty, regulatory requirements and elevated default risks. The financing gap is particularly acute in developing economies, where small and medium-sized enterprises often face significant barriers to participating in international trade.
Under the arrangement, Deutsche Bank will expand its capacity to support eligible trade transactions while MIGA assumes part of the political and commercial risk associated with those deals. Officials said the partnership is intended to attract greater private-sector participation rather than replace commercial financing, helping to channel more capital into underserved markets.
The initiative aligns with the World Bank Group’s broader strategy of using guarantees to crowd in private investment for developing economies. Through its new Guarantee Platform, housed within MIGA, the institution aims to significantly increase the use of risk-sharing instruments to finance infrastructure, energy, trade and other sectors that are essential for economic development.
For Deutsche Bank, the programme strengthens its presence in trade finance while supporting clients operating in markets that have traditionally been difficult to finance. The lender has long been one of the world’s largest providers of trade finance services and has increasingly partnered with multilateral development institutions to expand financing capacity in emerging economies.
The partnership comes as developing countries continue to grapple with tighter global financial conditions, higher borrowing costs and growing geopolitical uncertainty.
By reducing risk for commercial lenders, the €1 billion ($1.17 billion) guarantee programme is expected to improve access to trade finance, support cross-border commerce and stimulate private-sector investment in some of the world’s most vulnerable economies.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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