Fidelity Bank, in collaboration with the African Export-Import Bank and agribusiness firm JohnVents Industries, has executed a significant $40 million cocoa export deal during the Fidelity Bank International Trade and Creative Connect event in Houston, United States of America.
Why it matters
This cocoa export deal holds considerable importance for various reasons. It underscores the collaboration between financial institutions like Fidelity Bank and Afreximbank, along with agribusiness entities like JohnVents Industries, to facilitate the export of cocoa, a vital agricultural product, with a significant impact on the Nigerian market and its potential to meet US off-taker demand.
The deal exemplifies the opportunity for Nigerian businesses to access global markets, particularly the United States, and showcases the role of partnerships with institutions like Afreximbank in extending credit to support last-mile beneficiaries, enabling them to expand their operations on a global scale.
Go deeper
The signing of the $40 million pre-export finance facility took place during the Fidelity Bank International Trade and Creative Connect event in Houston. The loan is being extended by Afreximbank, with Fidelity Bank taking on the role of the local administrative agent.
The Fidelity Bank International Trade and Creative Connect event, held for the second time in Houston, serves as a platform to achieve multiple objectives, including fostering Nigerian businesses’ exports to the US, broadening product offerings for the diaspora market, and enhancing the capacity of exporters to meet international standards and enhance product quality.
The second edition of the trade expo, held over two days in Houston, Texas, aimed to achieve several objectives, including increasing the pipeline of Nigerian businesses exporting to the US market, diversifying product offerings for the diaspora market, and equipping exporters with the capacity to enhance product quality and meet international standards.
The expo set an ambitious target of closing approximately $250 million worth of deals, reflecting the need for businesses to explore viable alternatives and stay competitive in a rapidly evolving macro-economic environment on the global stage.
What they are saying
In a statement issued by Fidelity Bank, the Managing Director, Mrs. Nneka Onyeali-Ikpe, expressed enthusiasm about the tripartite loan signing ceremony, highlighting the potential of the Nigerian cocoa market to cater to the demands of US off-takers. Mrs. Onyeali-Ikpe also emphasised the value of the partnership between Fidelity Bank and Afreximbank in providing much-needed credit to last-mile beneficiaries in the cocoa industry which enables the bank to expand their operations and access global markets, aligning with the objectives of the Fidelity Bank International Trade and Creative Connect event.