The Afreximbank and the Africa Trading and Distribution Company (ATDC) have signed a $500 million Global Credit Facility to support trade, movement and distribution of commodities across African and global markets.
The statement issued by Vincent Musumba, Communications and Events Manager, Afreximbank, in Abuja on Monday stated that the facility is expected to strengthen trade and distribution networks across the continent by providing financing for the purchase and aggregation of African goods, as well as logistics, transportation, warehousing and distribution.
It said that under the agreement, Afreximbank will provide ATDC with trade-finance capacity to undertake and scale eligible trading and distribution transactions across Africa.
The statement added that the financing would support purchasing and aggregation of African goods, associated logistics, transportation, warehousing and distribution costs, providing ATDC with the financing required across different stages of the trade and distribution cycle.
It explained that beyond financing individual transactions, the facility was expected to help ATDC develop repeatable trade corridors and expand access to dependable sourcing and distribution networks across African markets.
“It will also support commercially sustainable trade flows, greater processing of African commodities and increased regional availability of raw materials, inputs and value-added products,” the statement said.
The statement added that Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development, Afreximbank, said that the facility underscored the bank’s commitment to strengthening the trade, logistics and distribution architecture required to realise the potential of AfCFTA.
Awani said that the facility would facilitate the efficient distribution of “Made-in-Africa” goods across the continent, deepen regional value chains and expand market access for African producers.
She explained that it would also support manufactured exports and enhance the global competitiveness of African products.
According to her, these are critical building blocks for expanding Africa’s export footprint and driving the continent’s economic transformation.
Mr. Stewart Makura, Chief Executive Officer of ATDC, said that reliable systems connecting producers, processors, manufacturers and markets were critical to realising Africa’s trade potential.
Makura said that the facility would strengthen ATDC’s capacity to aggregate supply, mobilise working capital and move goods efficiently across value chains.
“Together with Afreximbank, we will support stronger supply chains, value addition, import substitution and intra-African trade,” he said.
ATDC is a pan-African platform established to support the expansion of Africa’s trade, accelerate industrialisation through increased local value addition and strengthen economic integration across the continent.
The company has initial local operations in Egypt, Nigeria, Malawi and Zimbabwe, where it seeks to address gaps in trade and market intelligence, improve market access and support the implementation of the AfCFTA.
GIK/APA