The African Export-Import Bank (Afreximbank) and the Africa Trading and Distribution Company (ATDC) have signed a $500 million Global Credit Facility to support the movement, distribution and trade of commodities and products across African and global markets
The facility will provide ATDC with trade finance to scale eligible trading and distribution transactions across the continent, including the purchase and aggregation of African goods, logistics, transportation, warehousing and distribution costs
ATDC is a pan-African platform recently established by the Cairo-based lender to expand Africa’s trade, accelerate industrialisation through increased local value addition and strengthen economic integration across the continent
With initial operations in Egypt, Nigeria, Malawi and Zimbabwe, the platform seeks to improve market access, address gaps in trade and market intelligence and support implementation of the African Continental Free Trade Area (AfCFTA)
Under the agreement, ATDC will deploy the financing towards eligible trade, logistics and distribution transactions, with repayments anchored on proceeds generated from the sale of goods financed through the facility
Mrs Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, said the facility would strengthen the trade, logistics and distribution infrastructure needed to maximise the potential of AfCFTA
“The $500 million Global Credit Facility extended to ATDC underscores Afreximbank’s commitment to strengthening the trade, logistics and distribution architecture required to realise the full potential of the African Continental Free Trade Area (AfCFTA),” she said
Mrs Awani said the facility would facilitate the distribution of African-made goods across the continent, deepen regional value chains, expand market access for producers and support manufactured exports
She added that the financing would also improve the global competitiveness of African products and support the continent’s transition towards higher-value exports
On his part, Mr Stewart Makura, Chief Executive Officer of ATDC, said the facility would strengthen the company’s ability to connect producers, processors, manufacturers and markets across Africa
“Realising Africa’s full trade potential requires reliable systems that connect producers, processors, manufacturers and markets. This facility strengthens ATDC’s ability to aggregate supply, mobilise working capital and move goods efficiently across value chains,” he said
Mr Makura said the partnership with Afreximbank would support stronger supply chains, value addition, import substitution and intra-African trade
Beyond financing individual transactions, the facility is expected to help ATDC establish repeatable trade corridors and expand access to sourcing and distribution networks across African markets
It will also support commercially sustainable trade flows, increased processing of African commodities and greater regional availability of raw materials, inputs and value-added products
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