Abu Dhabi export office signs $ 30 million trade finance deal with African Development Bank

The Abu Dhabi Export Office (ADEX), the export finance arm of the Abu Dhabi Fund for Development, signed a $ 30 million trade finance agreement with the Trade and Development Bank of East and Southern Africa (TDB) to strengthen trade between the UAE and the lender member. States.

As part of the deal, ADEX will provide loans through TDB to buyers and importers in the bank’s member states for the purchase of goods and services in the UAE, according to a statement from the Bank. Abu Dhabi Media Office Monday.

The partnership is the first of its kind to be signed by ADEX with a foreign financial institution and is expected to support both exporters and importers as the global economy faces challenges due to the coronavirus pandemic.

“It is not only a difficult time for UAE exporters, but it is also a difficult time for their overseas buyers, especially small importers who cannot access any direct credit facilities from financial institutions. of exports, ”Saeed Al Dhaheri, acting director general of ADEX, mentioned.

“Both are grappling with liquidity and cash flow issues, late payments from suppliers and limited access to finance. Through our partnership with TDB, we intend to provide a solution to these challenges that allows the exporter and importer to quickly and easily finance mutually beneficial transactions, ”added Mr. Al Dhaheri.

Adex was established last year by ADFD to help boost international trade by providing loans and guarantees to foreign buyers looking to import goods and services from the UAE.

Earlier this year, ADFD allocated 735 million dirhams ($ 200 million) to the Abu Dhabi export office to boost economic diversification and boost exports.

The TDA is made up of 22 member countries from eastern and southern African states stretching from Egypt in the north to Zimbabwe in the south. It also has a number of multilateral organizations as members, including the African Reinsurance Company, the African Development Bank and the Opec Development Fund.

Admassu Tadesse, managing director and chief executive officer of TDB Group, said trade between the UAE and Africa has doubled in the past five years, while it has increased by an estimated eightfold over the past five years. Last 15 years.

“Statistics signal a growing interest of companies in the UAE and our region to build stronger business relationships.”

A cooperation agreement was also signed between the two institutions to promote trade between the UAE and Africa. ADEX and TDB will explore the possibilities of co-financing eligible transactions and establishing additional lines of credit.

The United Arab Emirates, the second largest Arab economy, has taken a number of steps to support local exporters during the coronavirus-induced slowdown.

Etihad Credit Insurance, the United Arab Emirates’ federal export credit agency, signed an agreement with Emirates NBD last month to improve access to trade finance for exporters. ECI also signed an agreement with the African Trade Insurance Agency in March to improve insurance and financing capacities to support the growth of trade between the UAE and Africa.

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