ABC Holdings Limited, the parent company of BancABC, has secured a $50 million trade finance credit line from the African Export–Import Bank (Afreximbank) to promote and facilitate trade in the group’s operations.
The banking group with operations in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe said the deal was sealed at Afreximbank’s 18th shareholders’ annual general meeting held in Angola last week.
In a press statement the financial institution said the revolving trade credit line will be marketed to large and middle corporate entities as well as small and medium enterprises (SMEs) in all the five above-mentioned countries on a first-come first-served basis.
The funding will be channeled towards financing the importation of raw materials, semi-processed goods, consumables and spares, purchase of goods/commodities as well as meeting working capital requirements to fulfil export orders.
Companies will also be able to use the funding to improve their cash flow cycles by discounting their export proceeds.
BancABC group chief operating officer Francis Dzanya said: “The facility is a shot in the arm for the group which will enhance our capacity to bolster regional trade integration initiatives and exports to international markets.”
“Therefore there are huge, and in some cases, virtually untapped opportunities for trade business in these markets and beyond.”
Afreximbank president Jean- Louis Ekra said: “It gives pleasure for Afreximbank to support a bank such as BancABC with a regional footprint that finances intra-regional trade as this fits well with Afreximbank’s own mandate.
“The facility we have signed today marks the beginning of a long and mutually beneficial relationship between our two institutions and there is no doubt that the ultimate beneficiary will be the importing and exporting businesses in the five countries that BancABC currently operates in, who greatly need access to trade finance.”