The African Export-Import Bank (Afreximbank) and the Africa Trading and Distribution Company (ATDC) have signed a US$500 million Global Credit Facility aimed at expanding the movement and distribution of African goods across the continent and international markets.
The financing arrangement is expected to strengthen trade networks, improve supply chains and give African producers greater access to markets.
Under the agreement, Afreximbank will provide ATDC with trade-financing capacity to undertake eligible commodity trading and distribution transactions across African markets.
The facility will cover the purchase and aggregation of goods from African producers, as well as related costs such as transportation, logistics, warehousing and distribution.
ATDC will repay the financing from proceeds generated through the sale of goods supported by the facility.
Focus on Made-in-Africa Products
Afreximbank’s Executive Vice President for Intra-African Trade and Export Development, Kanayo Awani, said the agreement was designed to strengthen the trade, logistics and distribution systems needed to maximise the opportunities created by the African Continental Free Trade Area (AfCFTA).
She said the facility would help move more “Made-in-Africa” products into markets across the continent, while expanding opportunities for producers and supporting the growth of manufactured exports.
According to Awani, strengthening regional value chains and improving the competitiveness of African products are important steps towards increasing the continent’s presence in global trade.
ATDC to Expand Trade Corridors
ATDC Chief Executive Officer, Stewart Makura, said the financing would improve the company’s ability to aggregate products, mobilise working capital and move goods more efficiently between producers, processors, manufacturers and markets.
He said the partnership would focus on strengthening supply chains, promoting local value addition, supporting import substitution and increasing intra-African trade.
Beyond financing individual transactions, the facility is expected to help ATDC establish repeatable trade corridors and expand access to reliable sourcing and distribution networks across African markets.
Operations Already Underway in Four Countries
ATDC is a pan-African trading and distribution platform established to improve market access, address trade-information gaps and support greater economic integration.
The company currently has operations in Egypt, Nigeria, Malawi and Zimbabwe, with plans to expand its network across additional African markets.
The new financing is also expected to support greater processing of African commodities and improve the regional availability of raw materials, industrial inputs and value-added products.
The agreement comes as African countries continue efforts to increase intra-African commerce and reduce some of the trade, financing and distribution barriers limiting the movement of goods between markets.
Through the partnership, Afreximbank and ATDC aim to strengthen the infrastructure connecting African producers with consumers and businesses across the continent, while creating more commercially sustainable trade flows.
