CDC Group unveils record levels of trade finance to Africa and South Asia
A UK impact investor and development finance institution has declared openly a record month for the trade guaranteed program. This program includes 350 transactions and $500 million guarantees for the month of March.
It is an extension of a $100 million trade loan to one of the leading banks of Africa. This Trade Finance Programme has been launched in 2015 since then CDC has substantiated $3.3 billion ensuing $12.5 billion of exchange in it's South Asia and Africa markets.
CDC presently prevails margin to more than 350 banks over South Asia and Africa. With the help of these banks, CDC ensures the growth of the financial markets and supports small businesses with capitals. It also looks at importing commodities so that local people can access them.
The rift in trade finance causes problems to domestic import and export in Africa and is estimated at around $90 billion to $120 billion. The expansion of businesses is often limited because of low financial aid.
Understanding the importance of trade finance on the economic front, CDC has stimulated the rate to help in filling these gaps to enable businesses to grow and benefit the local people and the economy.
With the help of exchange between businesses, the CDC could help to ameliorate poverty and assure the vital goods to reach the people who need them the most.
Related news: COVID-19 Crisis Poses Threat to Financial Stability
To fight COVID 19 impacts CDC is focusing on trade finance that will help the economies to grow and eliminate the chances of shut down. The firm emphasizes on liquidity flow over its banks and financial arbitrators to boost the markets.
COVID 19 pandemic stances threat to human life and millions of people have to face a lack of food and essentials every day. To ensure essential food supplies CDC has also aided $165 million of trade flows in the agriculture and food sector. CDC also supported Nigeria by $56 million trade flow.
This capital investment will produce enough quantity of essential foods such as wheat, maize, and milk to support local people that need sustenance.
CDC's Chief of Trade and Supply Chain Finance, Admir Imami expressed that they have been witnessing a powerful lift in their Trade Finance Programme. In the month of March, CDC bounded more than half a billion dollars to its network of banks to strengthen trade flow across Asia and Africa. He also stated that they invest in the markets that need trade flows for economic as well as social development.
COVID 19 stands as a drawback for economic and social development. Every market is facing difficulty in providing basic necessities and financial stability. CDC had levitated their Trade Finance Programme for combating COVID 19 crisis. CDC is currently focusing on medical, food and essential stocks and to provide financial stability to the local people across Africa and South Asia.