Posted on March, 26, 2024 at 09:55 am
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.
Source: MSN