African Export-Import Bank (Afreximbank) and the Africa Trading and Distribution Company (ATDC) have signed a $500 million Global Credit facility agreement to boost trade, movement and distribution of commodities and products across African and global markets.

The agreement, from Afreximbank, provides ATDC with a trade-financing facility to undertake eligible trading and distribution transactions across Africa.

The facility will finance the purchase and aggregation of African goods from African producers, covering related logistics, transportation, warehousing, and distribution costs, adding that it would be used across different stages of the trade and distribution cycle.

ATDC will repay the financing from proceeds generated from the sale of goods financed through the facility.

The pan-African platform was established to expand trade in the continent while improving industrialisation through increased local value addition, and strengthening economic integration.

ATDC currently runs local operations in Egypt, Nigeria, Malawi and Zimbabwe to close gaps in trade and market intelligence, improving market access, and supporting implementation of the African Continental Free Trade Area (AfCFTA).

Kanayo Awani, executive vice president, Intra-African Trade and Export Development, Afreximbank, speaking at the signing said, “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).”

Ms Awani added that it will aid in ensuring efficient distribution of ‘Made-in-Africa’ goods across the continent, giving African producers more access to more markets while increasing exports, advancing the AfCFTA’s vision of a more integrated and industrialised African economy. 

“It will also enhance the global competitiveness of African products, positioning the continent as a significant exporter of value-added and manufactured goods. These are critical building blocks for expanding Africa’s export footprint and driving the continent’s economic transformation,” she said.

Stewart Makura, ATDC chief executive officer, said, “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. Together with Afreximbank, we will support stronger supply chains, value addition, import substitution and intra-African trade.”

The agreement would help the ATDC develop regular trade routes and expand access to dependable sourcing and distribution networks across African markets to increase productivity.