The African Export-Import Bank (Afreximbank) and the Africa Trading and Distribution Company (ATDC) have signed a US$500 million Global Credit Facility to support the movement and distribution of commodities and products across African and global markets.
The facility will strengthen trade links between African producers, processors, manufacturers and markets. It will also help improve access to goods across the continent while supporting local value addition and the implementation of the African Continental Free Trade Area (AfCFTA).
ATDC is a pan-African trading and distribution platform established to expand Africa’s trade and accelerate industrialisation through increased local value addition. The company also aims to strengthen economic integration across African markets.
With initial local operations in Egypt, Nigeria, Malawi and Zimbabwe, ATDC is working to address gaps in trade and market intelligence. It is also focused on improving market access and supporting stronger connections between businesses across the continent.
Financing Trade and Distribution Across Africa
Under the agreement, Afreximbank will provide ATDC with trade-finance capacity to undertake and expand eligible trading and distribution transactions across Africa.
The funding will cover the purchase and aggregation of African goods. It will also support related logistics, transportation, warehousing and distribution costs. This gives ATDC access to financing across different stages of the trade and distribution cycle.
ATDC will use the facility for eligible trade, logistics and distribution transactions. Repayments will be supported by proceeds from the sale of goods financed through the facility.
Kanayo Awani, Executive Vice President, Intra-African Trade and Export Development at Afreximbank, said the facility reflects the bank’s commitment to building the trade, logistics and distribution systems needed to support AfCFTA.
She said the financing would help distribute “Made-in-Africa” goods more efficiently across the continent. According to Awani, this can deepen regional value chains, expand market access for African producers and support growth in manufactured exports.
The facility is also expected to improve the global competitiveness of African products by supporting the growth of value-added and manufactured goods. Awani said these developments are important to expanding Africa’s export footprint and supporting the continent’s economic transformation.
Building Stronger Regional Supply Chains
For ATDC, the facility will provide greater capacity to connect different parts of the supply chain.
ATDC Chief Executive Officer Stewart Makura said Africa needs reliable systems that connect producers, processors, manufacturers and markets if the continent is to realise its full trade potential.
He said the facility will strengthen ATDC’s ability to aggregate supply, mobilise working capital and move goods more efficiently across value chains. Makura added that the partnership with Afreximbank will support stronger supply chains, value addition, import substitution and intra-African trade.
The impact of the facility is expected to extend beyond individual trade transactions. It will help ATDC develop repeatable trade corridors and expand access to dependable sourcing and distribution networks across African markets.
The initiative will also support commercially sustainable trade flows, greater processing of African commodities and improved regional access to raw materials, production inputs and value-added products.
Afreximbank has supported African trade and industrialisation for more than 30 years. The Pan-African multilateral financial institution provides financing solutions aimed at promoting intra- and extra-African trade and transforming the structure of Africa’s trade.
The bank is also a strong supporter of AfCFTA. It has launched the Pan-African Payment and Settlement System (PAPSS), which was adopted by the African Union as a payment and settlement platform for AfCFTA implementation.
Together with the AfCFTA Secretariat and the African Union, Afreximbank has also established a US$10 billion Adjustment Fund to support countries participating in the continental trade agreement.
