Afreximbank Extends $500 Million Trade Facility to Pan-African Trading Platform

The African Export-Import Bank (Afreximbank) has agreed to provide a 500 million US dollar credit facility to the Africa Trading and Distribution Company (ATDC) to finance the movement of goods across African and international markets.

The global credit facility will provide ATDC with financing for the purchase and aggregation of African goods, as well as logistics, transportation, warehousing and distribution costs.

ATDC, a pan-African trading and distribution platform, currently operates locally in Egypt, Nigeria, Malawi and Zimbabwe. The company aims to expand intra-African trade, increase local value addition and support implementation of the African Continental Free Trade Area (AfCFTA).

Under the agreement, ATDC will use the financing for eligible trade, logistics and distribution transactions, with repayments tied to proceeds from the sale of goods financed through the facility.

Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, said the facility would strengthen the trade, logistics and distribution systems needed to expand intra-African commerce.

“By facilitating the efficient distribution of ‘Made-in-Africa’ goods across the continent, the facility will deepen regional value chains, expand market access for African producers, and boost manufactured exports,” Awani said.

She said the financing would also support the expansion of Africa’s export base and improve the global competitiveness of value-added and manufactured products from the continent.

Stewart Makura, CEO of ATDC, said the facility would enable the company to aggregate supply, mobilise working capital and move goods more efficiently across supply chains.

The financing will also be used to develop repeatable trade corridors and expand sourcing and distribution networks across African markets.

The two institutions said the facility is expected to support increased processing of African commodities and improve regional access to raw materials, industrial inputs and value-added products.

Source: FSX Business News