The Africa Finance Corporation (AFC) announced a US$1 billion Unfunded Managed Debt Mobilisation Programme (UMDMP) with Munich Re, aimed at increasing trade‑finance liquidity for African banks.

The first phase will cover commercial letters of credit, trade loans and trade guarantees – the core instruments banks use to finance imports and exports – and will involve 38 financial institutions in 11 countries.

Munich Re will provide committed risk‑sharing support of US$1 billion, automatically covering eligible AFC‑originated transactions under pre‑agreed risk parameters.

AFC will retain a portion of the risk on each transaction, aligning its interests with Munich Re and ensuring that capacity is recycled as short‑dated trade deals are repaid.

Transactions can be financed for up to 12 months, after which the programme’s capacity is freed and can be redeployed for new trade finance needs.

The partnership builds on a relationship that began in 2018, when Munich Re started sharing risk on AFC loans one transaction at a time, and includes two completed deals in 2026.

AFC’s head of financial services, Banji Fehintola, said the programme reflects a shift toward an originate‑to‑distribute model that leverages private capital to meet Africa’s large financing gap.

Munich Re’s global credit head, Herbert Müller, highlighted the programme as a way to scale the reinsurer’s exposure to African trade while benefiting from AFC’s pan‑African footprint.

The UMDMP also anchors AFC’s broader Managed Debt Mobilisation Program, a platform that will allow other institutional investors to participate as funders or risk partners.