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

TDb Split

25/03/2024 07:00

* 
      British International Investment agrees Africa finance
deal
    

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      Aimed at helping trade in eastern, southern Africa
    

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      African economies face rising debt, inflation, climate
burdens
    

  
    By Simon Jessop
       LONDON, March 25 (Reuters) - 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 Managing Director.
    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.    

 (Reporting by Simon Jessop, Editing by William Maclean)
 ((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052;
Reuters Messaging: Reuters Messaging:
simon.jessop.thomsonreuters.com@reuters.net))