AfDB invests $25m in TCX to boost local currency financing across Africa

The African Development Bank (AfDB) has approved a $25 million equity investment in The Currency Exchange Fund (TCX) to strengthen access to local currency financing across Africa.

The investment is expected to expand TCX’s capacity to provide hedging instruments in illiquid currencies, helping borrowers reduce exposure to foreign exchange risks, particularly in fragile and underserved markets.

Ahmed Attout, AfDB’s Director of Financial Sector Development, described the move as a “milestone in deepening African capital markets,” adding that it would unlock financing for micro, small and medium enterprises (MSMEs), infrastructure, and other critical sectors.

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Founded in 2007, TCX specialises in long-term local currency hedging in frontier and emerging markets.

Since inception, it has hedged more than $17 billion in transactions, including $4 billion in 31 African countries. About 18% of its portfolio is concentrated in fragile and low-income.

Ruth Tene Natsa

Ruth Tene, Assistant Editor, Agric/Solid Minerals/INEC Ruth Tene is an award-winning journalist with over 15 years experience in developmental reporting across several newsrooms, as a reporter, editor and other managerial roles. She holds a Postgraduate Diploma in Journalism from the University of Maiduguri among several other certifications She has attended several trainings and certifications both locally and internationally and has been recognized for her impactful work in humanitarian reporting, receiving the Gold Award for Humanitarian Services from the Amazing Grace Foundation. She is also a recipient of the Home Alliance Fellowship, reflecting her commitment to fostering a more humane, safer and more sustainable planet. An active member of professional journalism bodies, Ruth is affiliated with the Nigeria Union of Journalists (NUJ), the National Association of Women Journalists (NAWOJ), and the Agricultural Correspondents Association of Nigeria (ACAN), where she continues to advocate for excellence, ethical reporting, and development-focused journalism.