The African Export-Import Bank (Afreximbank) has signed a $500 million global credit facility with the Africa Trading and Distribution Company (ATDC) to finance the movement of commodities and products across African and international markets, supporting efforts to deepen regional supply chains and expand trade.
The facility will provide ATDC with trade-finance capacity for purchasing and aggregating African goods, transportation, warehousing and distribution, according to a statement announcing the agreement.
The financing comes as African businesses and financial institutions seek to address gaps in market access, logistics and working capital that constrain the expansion of intra-African commerce under the African Continental Free Trade Area.
“ The US$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),” Kanayo Awani, Afreximbank’s executive vice president for intra-African trade and export development, said.
Financing Trade and Distribution
ATDC, a pan-African trading platform, was established to support the expansion of African commerce, increase local value addition and strengthen economic integration.
The company has initial local operations in Egypt, Nigeria, Malawi and Zimbabwe, where it seeks to address trade and market intelligence gaps, improve market access and support AfCFTA implementation.
Under the agreement, ATDC will deploy the financing toward eligible trading, logistics and distribution transactions. Repayment will be anchored on proceeds generated from the sale of goods financed through the facility.
The structure is designed to support different stages of the trade cycle, from commodity procurement and aggregation to transportation and final distribution.
Focus on Regional Value Chains
The agreement extends beyond financing individual transactions, with the facility expected to help ATDC develop repeatable trade corridors and expand access to sourcing and distribution networks across African markets.
Afreximbank said the facility would support the distribution of Made-in-Africa goods, deepen regional value chains and expand market access for producers.
Awani said the financing would also help boost manufactured exports and improve the global competitiveness of African products.
“This facility strengthens ATDC’s ability to aggregate supply, mobilise working capital and move goods efficiently across value chains,” Stewart Makura, chief executive officer of ATDC, said.
“Together with Afreximbank, we will support stronger supply chains, value addition, import substitution and intra-African trade.”
The agreement is intended to support commercially sustainable trade flows, greater processing of African commodities and increased regional availability of raw materials, industrial inputs and value-added products.
The statement did not disclose the facility’s tenor, pricing, disbursement schedule or the total value of transactions expected to be financed.
