https://www.engineeringnews.co.za

Britain agrees $100m trade finance to boost Africa food security

25th March 2024

By: Reuters

  

Font size: - +

Development lender British International Investment said on Monday it had agreed a $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 will help fund trade, including importing and exporting goods, on a continent where many debt burdened African economies face currency depreciation and rising debt and inflation compounded by issues such as climate change.

Providing more capital to help bolster trade finance in the region is important as many international lenders have pulled back from offering it, leading to a finance gap of up to $120-billion a year, African Development Bank research shows.

By providing the financing to TDB, local companies will 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.

"This investment underscores the UK government's commitment to supporting economic and agricultural development across Africa," said Andrew Mitchell, Britain's Minister for Development and Africa.

BII, which has investments in over 1,470 businesses in emerging economies across 65 countries and total assets of 8.1-billion pounds, said that between 2022 and 2026 at least 30% of its total new commitments by value will be in climate finance.

The financing facility with TDB is the fourth of its kind to be struck with the lender and would help the bank address supply chain disruptions and forex shortages, said Admassu Tadesse, TDB Group president and MD.

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 added.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Alcohol Breathalysers
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.043 0.861s - 122pq - 2rq
Subscribe Now