The African Export-Import Bank (Afreximbank) and the Africa Trading and Distribution Company (ATDC) have signed a $500 million global credit facility agreement. This agreement aims to support trade, movement, and distribution of commodities and products across African and global markets. The facility will enable ATDC to undertake and scale eligible trading and distribution transactions across the continent. This partnership is expected to boost Africa's trade and economic growth.
ATDC is a pan-African platform established to support the expansion of Africa's trade. The platform has initial local operations in Egypt, Nigeria, Malawi, and Zimbabwe. ATDC's primary goal is to close gaps in trade and market intelligence, improve market access, and support the implementation of the African Continental Free Trade Area (AfCFTA). By achieving these objectives, ATDC seeks to promote economic integration and development across the continent.
Under the facility, Afreximbank will provide ATDC with trade-finance capacity. This capacity will be used to undertake and scale eligible trading and distribution transactions across the continent. The financing will support purchasing and aggregation of African goods, associated logistics, transportation, warehousing, and distribution costs. This will provide ATDC with the necessary financing across different stages of the trade and distribution cycle.
The financing provided by Afreximbank will be deployed by ATDC towards eligible trade, logistics, and distribution transactions. Repayments will be anchored on proceeds generated from the sale of goods financed through the facility. This arrangement ensures that the facility is self-sustaining and can be used to support further trade and distribution activities.
Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, commented on the signing of the agreement. She stated that 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 AfCFTA.
Mr. Stewart Makura, Chief Executive Officer of ATDC, also shared his thoughts on the partnership. He said that 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.
The partnership between Afreximbank and ATDC is expected to have a positive impact on Africa's trade and economic growth. The $500 million facility will support stronger supply chains, value addition, import substitution, and intra-African trade. This will help to promote economic integration and development across the continent, ultimately improving the lives of Africans.
Key points
- Afreximbank and ATDC have signed a $500 million global credit facility agreement to support trade and distribution across African and global markets.
- The facility will enable ATDC to undertake and scale eligible trading and distribution transactions across the continent.
- The partnership is expected to promote economic integration and development across Africa, ultimately improving the lives of Africans.
