Africa Trade Gateway Completes First Southern African Energy Transaction

The Africa Trade Gateway has completed its first energy-sector transaction in Southern Africa, facilitating a US$5.3 million cross-border trade involving a Zimbabwean importer and an international fuel supplier.

According to Afreximbank, Zimbabwean company Witeva Trading used the platform to purchase gasoil from a Swiss supplier, with InnBucks MicroBank acting as the local issuing institution and Afreximbank providing confirmation support.

The transaction is significant because it demonstrates how a digital trade platform can connect commercial counterparties, financial institutions and trade-finance services within a single ecosystem. It was the first energy transaction recorded through the Africa Trade Gateway in Southern Africa and the first completed transaction on the platform for InnBucks MicroBank.

The deal should not be described as the first cross-border energy transaction in Southern Africa. Its distinction lies specifically in being the first such energy-sector transaction completed through the Africa Trade Gateway in the region.

African businesses frequently face difficulties identifying reliable counterparties, accessing trade finance and completing payments across borders. Digital trade infrastructure can reduce some of these barriers by bringing verification, financing and transaction services together. The practical value of the platform, however, will depend on whether it can support a growing number of transactions across different markets and sectors.

The transaction also illustrates that the Gateway can support Africa-related trade beyond strictly intra-African commerce. In this case, the buyer was based in Zimbabwe while the supplier was located in Switzerland.

Source: Afreximbank.