The African Export-Import Bank (Afreximbank) has launched the African Trade and Distribution Company (ATDC), seeded with US$1 billion to transform how the continent trades raw materials and value-added products. The initiative includes a key subsidiary, ATDC Minerals (ATMIN), focused on minerals and hydrocarbons.
The launch, held in Algiers during the Intra-Africa Trade Fair, comes with partnerships across logistics, mineral trading, and commodity exchanges. Afreximbank President Benedict Oramah emphasized that Africa must move away from exporting unprocessed raw materials and instead build regional supply chains that capture more value.
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Why ATDC Matters
For decades, Africa’s exports have been dominated by raw commodities, with most of the value added abroad. This has limited industrialization, jobs, and regional growth. Prof. Oramah explained that “historical dynamics have skewed our trade outwards”, leaving Africa dependent on external markets.
The creation of ATDC and ATMIN is meant to close that gap by channeling investment into local processing, logistics, and trade financing, in line with the African Continental Free Trade Area (AfCFTA).
Partnerships at Launch
Several major partnerships were signed at the launch:
- Arise IIP will supply feedstock to its special economic zones.
- BSMART Technology will develop digitally integrated logistics hubs at African ports.
- Trade deals were reached with Export Trading Group, KK Kingdom Nigeria, and Sunbeth Global Concepts.
- Joint ventures for national ATDCs will be set up in Zimbabwe (with CBZ Holdings) and Nigeria (with the Nigeria Commodity Exchange).
- ATMIN secured US$3 billion in contracts, including oil-lifting deals with the Nigeria National Petroleum Company and Roxzen Nigeria.
ATMIN: Focusing on Resources
The subsidiary ATDC Minerals (ATMIN) is dedicated to trading and financing minerals and hydrocarbons. According to Reuters, former Shell traders were involved in setting up Atmin earlier this year, with Afreximbank as the lead backer.
This venture gives Africa its own trading house capable of handling crude oil, refined products, and minerals, challenging the dominance of foreign commodity traders.
Role of FEDA
The ATDC launch is financed through FEDA, Afreximbank’s Fund for Export Development in Africa. FEDA was created to address Africa’s US$110 billion financing gap in trade and industrialization.
By 2024, FEDA had mobilized US$770 million in capital with a target of US$1.3 billion, and Afreximbank itself disbursed US$18.7 billion in loans to African economies. The ATDC represents one of its boldest moves, shifting from being just a lender to a direct operator in trade.
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Aligning with AfCFTA
The ATDC supports the rollout of the AfCFTA, which seeks to unite 54 countries into a single market. AfCFTA could increase intra-African trade by over 50% by 2035, but bottlenecks in logistics and payments have slowed progress.
Afreximbank has already supported this effort with the Pan-African Payment and Settlement System (PAPSS), which allows cross-border payments in local currencies. ATDC adds the trade infrastructure to match the payment system.
Africa’s Trade Snapshot
According to Afreximbank’s 2025 Trade Report:
- Intra-African trade reached US$220 billion in 2024, up 12.4%.
- Africa’s merchandise trade totaled US$1.5 trillion.
- The continent accounted for just 3.3% of global exports.
These numbers highlight both progress and the urgent need for transformation.
Building Regional Value Chains
The ATDC initiative is designed to:
- Boost industrialization by financing processing plants for minerals and agricultural goods.
- Create jobs and technical expertise in local economies.
- Retain value that would otherwise go to overseas processors.
- Strengthen supply chains, making Africa less vulnerable to global disruptions.
By capturing more of the value chain, Africa can reduce dependence on external partners and keep more wealth on the continent.
Challenges and Risks
While promising, ATDC faces hurdles:
- Execution risks in scaling national ATDCs across diverse regulatory environments.
- Commodity price volatility, especially in hydrocarbons and minerals.
- Infrastructure gaps, such as weak port and rail networks.
- Governance risks, requiring strict transparency in managing US$1 billion in capital.
Why This Launch Feels Different
Unlike previous pan-African trade initiatives, ATDC is backed by a financially strong bank. Afreximbank reported in 2024:
- US$40 billion in assets
- US$7.2 billion in equity
- US$973 million in net income
With its credibility and access to global capital markets, Afreximbank is in a unique position to sustain ATDC through challenges.
Conclusion
The launch of the African Trade and Distribution Company is a landmark in Africa’s trade journey. With US$1 billion in seed capital, a resource-focused subsidiary in ATMIN, and a network of partnerships spanning logistics, commodities, and national exchanges, the initiative could reshape intra-African trade.
By aligning with AfCFTA and leveraging financial tools like PAPSS, Afreximbank is not just financing trade—it is building the institutions that will let Africa trade with itself and the world on more equal terms.
If successful, ATDC will represent a new model of African economic empowerment, keeping value at home and integrating the continent into the global economy from a position of strength.
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By: Montel Kamau
Serrari Financial Analyst
10th September, 2025
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