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.
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.
