CDC Group unveils record levels of trade finance to Africa and South Asia

CDC Group, the UK’s impact investor and development finance institution, has announced a record month for its trade guarantee programme with over $500m guaranteed across 350 transactions in March, representing a new programme high.

This is in addition to a $100m trade loan facility made available to one of Africa’s leading banks.

Since launching the Trade Finance programme in 2015, CDC has guaranteed $3.3bn, resulting in $12.5bn of trade across its markets of Africa and South Asia. CDC currently provides limits to over 350 local banks across Africa and South Asia.

Through these banks CDC helps to strengthen financial markets, thousands of businesses are supported with vital capital for growth and it underpins the importation of essential commodities to provide access for millions of local people across our markets.

The gap in trade finance is one of the key constraints facing local exporters and importers – estimates show that this stands between $90bn to $120bn in Africa – with businesses’ growth often limited by the challenge of accessing much needed finance.

Recognising that it’s trade finance programme is critical to job creation and economic growth, CDC has accelerated its programme to help plug these gaps and drive an increase in trade, to benefit businesses, local communities and their people.

By stimulating trade between businesses, CDC can help to alleviate poverty, and ensure vital goods get to those that need them most across our markets.

Trade finance is a key pillar in CDC’s response to Covid-19 and it is prioritising trade flows that support the global fight against this pandemic.

The firm aims to strengthen markets by injecting systemic liquidity across its existing network of banks and financial intermediaries.

CDC is also bolstering current banking partnerships to enable them to reach even more businesses, as many banks consider reducing trade finance availability across its markets.

The Coronavirus pandemic poses serious food security challenges.

To help distribute vital food supplies to millions of people, CDC recently supported over $165m of trade flows in the food and agricultural sector, including $56m in Nigeria.

This capital commitment will bring products such as maize, milk and wheat to thousands of people that need nourishment.

Admir Imami, CDC’s Director of Trade and Supply Chain Finance, said: “We continue to see a strong uplift in our Trade Finance programme. In March we guaranteed over half a billion dollars to banks bolstering trade across Africa and Asia. As a DFI, we channel our capital to the most challenged markets, where trade finance is key to economic and social development.”

“Covid-19 is destabilising every market and every part of the value chain. We have ramped up our Trade Finance programme as part of our pandemic response. Our current priority is to dedicate our trade finance programmes toward ensuring food security, medical and essential supplies and enhancing financial capacity in our market.”

Disclaimer
The information on this page may have been provided by a contributor to ChinaGoAbroad, and ChinaGoAbroad makes no guarantees about the accuracy of any content. All content shall be used for informational purposes only. Contributors must obtain all necessary licenses and/or ownership rights from the relevant content owner(s) before submitting such content (including texts, pictures, photos and diagrams) to ChinaGoAbroad for publication. ChinaGoAbroad disclaims all liability arising from the publication of any content/information (such as texts, pictures, photos and diagrams that infringe on any copyright) received from contributors. Links may direct to third party sites out of the control of ChinaGoAbroad, and such links shall not be considered an endorsement by ChinaGoAbroad of any information contained on such third party sites. Please refer to our Disclaimer for more details.
Top