TDB Group President Admassu Tadesse on risk-sharing, trade finance and partnership with the OPEC Fund

As part of the OPEC Fund’s Development Forum 2025 interview series, we spoke with Admassu Tadesse, President and CEO of the Eastern and Southern African Trade and Development Bank (TDB), to explore how TDB is adapting to shifting development needs and where the strongest synergies lie with the OPEC Fund.

How is TDB Group evolving its risk-sharing approach in today’s trade environment?
TDB was created to operate in markets with institutional and market failures and its structure is designed to manage those risks effectively. The bank engages with insurance syndicates to share, though not offload, significant portions of its risk. It also works closely with financial partners—other banks that understand TDB’s regional expertise—under risk participation agreements that can be both funded and unfunded. Additionally, TDB accesses portfolio guarantees from time to time, supported by private sector actors and specialized institutions who enable the bank to continue operating in challenging environments.

Where do you see the strongest synergies between TDB and the OPEC Fund in closing the trade finance gap?
TDB has made progress in SME financing and is now exploring partnerships around special purpose vehicles (SPVs) to address the estimated US$100 billion trade finance gap in Africa. One flagship SPV is nearing half a billion dollars, backed by more than 50 shareholders. The OPEC Fund, as a shareholder in TDB, has indirectly supported this work by providing equity that helped launch such vehicles. TDB sees strong potential for further cooperation, particularly around a new medium-term trade finance fund now in development. Shared priorities include supporting fuel and fertilizer imports, energy security, and climate transition in a practical and realistic way that aligns with developing country needs.

OPEC Fund & TDB Partnership Snapshot:
The OPEC Fund and TDB Group have worked closely together since 2009, building a strong partnership through a range of financing tools—from loans and equity investments to risk-sharing arrangements—amounting to around US$200 million to date.

In 2022, the OPEC Fund deepened its partnership with TDB by providing an additional US$40 million- US$30 million in loan financing for infrastructure projects and a US$10 million equity investment, marking its second capital contribution to the bank. This support has helped TDB grow its trade and infrastructure financing across its 22 member countries.

The partnership is anchored in a co-operation agreement signed in 2019 and continues to grow through joint risk-sharing efforts with other partners. Together, the two institutions focus on key sectors like trade, agriculture, energy, industry, tourism and infrastructure, while working to expand the use of innovative and blended financing to maximize impact.

Watch the full interview with Admassu Tadesse at https://www.youtube.com/watch?v=ZpvpfSGYedk  and follow the series on our social media channels.