Home Business Afreximbank Launches African Trade and Distribution Company to Transform Intra-African Commodity Trade

Afreximbank Launches African Trade and Distribution Company to Transform Intra-African Commodity Trade

0

The African Export-Import Bank (Afreximbank) has officially launched the African Trade and Distribution Company (ATDC), a pan-African commercial entity designed to revolutionize the continent’s trade in raw materials, minerals, and value-added goods by boosting intra-African supply chains and reducing reliance on external markets for processing and distribution. The operational launch took place during the Intra-Africa Trade Fair 2025 (IATF2025) in Algiers, Algeria, under the auspices of Afreximbank President and Chairman Benedict Oramah, alongside Algeria’s acting Prime Minister Sifi Ghrieb and several government ministers from African and Caribbean nations.

Established through the Fund for Export Development in Africa (FEDA) in partnership with Arise Integrated Industrial Platforms (Arise IIP), Equitane DMCC, and the African Continental Free Trade Area (AfCFTA) Secretariat, the African Trade and Distribution Company marks a strategic step toward economic integration and self-reliance in African trade. With an initial funding commitment of $1 billion from Afreximbank, ATDC will finance the aggregation of processed and semi-processed African goods, strengthen logistics and distribution networks, and support the operations of its subsidiaries across key sectors including agriculture, mining, and energy.

Oramah emphasized that the creation of ATDC responds to decades of structural imbalance in how Africa engages in global trade. “Africa is rich in resources; yet historically, our trade has been skewed outward, with commodities shipped raw to foreign markets where value is added elsewhere,” he said. “Through ATDC and its dedicated mineral trading arm, ATMIN, we are closing the loop—taking control of how our resources are processed, financed, and traded across value chains so that more benefits remain within Africa.”

Also unveiled at the event was ATDC Minerals (ATMIN), the flagship subsidiary focused on the trading and financing of minerals and hydrocarbons. ATMIN has already secured landmark agreements worth approximately $3 billion, including oil lifting arrangements with Nigeria National Petroleum Company Limited (NNPC) and Roxzen Nigeria Limited, positioning it as a major player in regional energy commerce.

In addition to its mineral ventures, ATDC has entered into multiple strategic collaborations across the continent. It has partnered with Arise IIP to supply feedstock to industrial operators within special economic zones, enhancing linkages between resource extraction and local manufacturing. A co-investment deal with BSMART Technology Limited will establish digitally integrated logistics hubs at key African ports, improving efficiency in cargo handling and transit. Trade agreements have also been signed with Export Trading Group (ETG), KK Kingdom Nigeria Limited, and Sunbeth Global Concepts Limited to expand the flow of agricultural and processed goods.

The company is advancing joint ventures with CBZ Holdings and the Nigeria Commodity Exchange to establish national ATDC subsidiaries in Zimbabwe and Nigeria, respectively, laying the foundation for a decentralized but coordinated network of trade enablers across member states. These initiatives align closely with the objectives of the AfCFTA, which seeks to boost intra-African trade by removing barriers and creating integrated markets.

By consolidating sourcing, financing, logistics, and market access under one continental framework, ATDC aims to reduce fragmentation, increase transparency, and attract private investment into African value chains. Its model emphasizes not only volume but value retention—ensuring that African economies capture more returns from their natural wealth.

The launch comes at a pivotal moment for regional integration, as African nations seek to diversify economies, create jobs, and build resilience against global market shocks. With strong institutional backing, committed capital, and a growing portfolio of partnerships, the African Trade and Distribution Company is poised to become a cornerstone of Africa’s economic transformation—one trade deal, one commodity, and one country at a time.

Follow us on Instagram.

https://www.instagram.com/businessnewsng?igsh=ZXpweTdjOGF1ZXdu

Previous articleNigeria’s Inflation Expected to Fall to 21.45% in August Amid FX Gains and Harvest Relief, Coronation Projects
Next articleCardinalStone Named Africa’s Best Broker at 2025 Euromoney Capital Market Awards

LEAVE A REPLY

Please enter your comment!
Please enter your name here