A US$100m trade finance for Africa food security fixed
THE British Government has agreed a US$100 million trade finance to boost Africa food security which Zambia is among the countries to benefit from the facility.
On Monday this week, Development lender British International Investment (BII) announced that it had agreed a US$100 million finance facility with the Eastern and Southern African Trade and Development Bank (TDB) to boost trade finance, farming and food security in the region.
The finance would assist fund trade, including importing and exporting goods, on the African continent, according to an article posted by Reuters.
Britain’s Minister for Development and Africa, Andrew Mitchell, in his comment noted: “This investment underscores the United Kingdom government’s commitment to supporting economic and agricultural development across
Africa.”
BII had investments in over 1,470 businesses in emerging economies across 65 countries and total assets of 8.1 billion pounds. By providing the financing to TDB, local companies would be able to buy essential materials such as fertilisers and machinery, helping boost output and cross-border trade, food security, job creation and economic resilience, the lender said.
TDB Group president and Managing Director, Admassu Tadesse, pointed out that the financing facility was the fourth of its kind to be struck with the lender.
Mr Tadesse expressed confidence that the facility would help the bank address supply chain disruptions and forex shortages. “It would also help the group play an important role, often working counter-cyclically to contribute to the security of supply of essential commodities in high priority sectors such as agriculture and healthcare,” he said.