Africa’s drive to strengthen intra-African trade is gaining new financial backing after the African Export-Import Bank and Africa Trading and Distribution Company signed a US$500 million Global Credit Facility to expand trade, logistics and distribution across the continent.
The agreement will provide ATDC with trade-finance capacity to purchase and aggregate African goods while supporting transportation, warehousing, logistics and distribution across regional markets.
ATDC is a pan-African trading and distribution platform focused on expanding Africa’s trade, increasing local value addition and strengthening economic integration. The company currently has local operations in Egypt, Nigeria, Malawi and Zimbabwe, with plans to help address gaps in market access, sourcing and trade intelligence.
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The facility is designed to support eligible trading and distribution transactions at different stages of the supply chain. Financing will be used for the purchase and aggregation of goods as well as the logistics required to move products efficiently from producers and suppliers to markets.
For African producers, manufacturers and processors, stronger distribution networks can provide access to a wider customer base beyond individual national markets. The facility is therefore positioned to support the development of regional value chains while increasing the availability of African products across the continent.
Kanayo Awani, Afreximbank’s Executive Vice President for Intra-African Trade and Export Development, said the facility would strengthen the trade, logistics and distribution infrastructure needed to unlock the potential of the African Continental Free Trade Area.
She said improving the distribution of “Made-in-Africa” goods could deepen regional value chains, expand market access for producers and support manufactured exports, while contributing to a more integrated African economy.
ATDC Chief Executive Officer Stewart Makura said reliable systems connecting producers, processors, manufacturers and markets are essential to Africa’s trade ambitions. He said the facility would strengthen the company’s ability to aggregate supply, mobilise working capital and move goods across value chains.
The financing will also support the development of repeatable trade corridors and dependable sourcing and distribution networks across African markets. By improving connections between production and consumption centres, the initiative aims to facilitate more commercially sustainable trade flows.
Another focus is greater processing of African commodities and wider regional access to raw materials, production inputs and value-added products. This could help strengthen local and regional supply chains while supporting efforts to reduce reliance on imports where competitive African production is available.
The agreement comes as African economies continue working to translate the AfCFTA into increased trade between countries. A more connected distribution system is an important part of that process, allowing businesses to move products across borders and reach customers in markets beyond their home countries.
With US$500 million in trade-finance capacity now available to support eligible transactions, the Afreximbank-ATDC partnership adds financial support to Africa’s broader push for stronger regional commerce, industrialisation and value-added production.
The initiative ultimately places trade infrastructure and market access at the centre of Africa’s effort to increase the movement of goods within the continent and strengthen the global competitiveness of African products.