CDC Group, a publicly funded development finance institution, has moved to support the Eastern and Southern African Trade and Development Bank (TDB) with a new US$100mn finance facility. The agreement aims to boost TDB’s capacity for providing credit to African businesses in need of short-term financing, and who are grappling with the economic impact of Covid-19. According to a statement from the parties, the commitment will provide top-up loans and much-needed capital to new and existing TDB clients, which in turn will support the import, export and production of “strategic inputs” and agricultural commodity goods in the 22 members states where TDB operates. There will be a “strong focus on those economies with the most challenging investment climates”, the release says. Meanwhile, it adds that the deal “comes at a time when access to finance for local companies and importers is more limited across the African continent”. Access to trade finance was already a major issue in Africa prior to Covid-19, with the International Chamber of Commerce estimating the trade finance gap to be as high as US$120bn. The likes of TDB have previously said that financing strains have only gotten worse since the outbreak of the pandemic, which has… continue reading
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Source: CTRM Center