DP World And Nedbank Collaborate To Enhance Trade Finance Solutions For African Suppliers

DP World Trade Finance has joined forces with Nedbank Corporate and Investment Bank (Nedbank CIB) to enhance supply chain finance for DP World's suppliers in sub-Saharan Africa. This partnership includes a risk-sharing agreement aimed at increasing trade finance availability, enabling businesses to transport goods more efficiently and improve their working capital.

The collaboration involves a supply chain finance programme on DP World's platform, with Nedbank CIB providing financing. This allows DP World's suppliers in the region to receive early payments on approved receivables. The programme addresses working capital constraints by offering a cost-effective alternative to traditional financing solutions available in the market.

Many businesses in the region struggle to access trade finance solutions necessary for participating in global trade opportunities. These challenges arise from limited data on creditworthiness and lack of visibility and control over underlying trade, which heightens perceived risks within the supply chain.

A risk-sharing agreement between Nedbank CIB and DP World Trade Finance allows both companies to share risks in mutually beneficial transactions. This increases the overall credit available to clients, supporting more businesses in accessing necessary financial resources for growth.

Mohammed Akoojee, CEO and Managing Director for sub-Saharan Africa at DP World, stated, "Our partnership with Nedbank represents a significant step forward in addressing the trade finance challenges that have impacted the growth potential of businesses across sub-Saharan Africa. By combining DP World's logistics capabilities with innovative financial solutions, we are not only enabling our suppliers to thrive but also fostering a more transparent and efficient trade ecosystem."

Anél Bosman, Group Managing Executive at Nedbank CIB, commented, "By combining our expertise in structured finance with DP World's logistics network, we are well-placed to tackle the region's trade finance challenges. This collaboration improves trade flow, empowers businesses to navigate a challenging economic environment, and unlocks new growth opportunities."

This initiative is crucial as a large portion of regional trade originates from businesses facing difficulties accessing suitable trade finance solutions. By addressing these issues, the partnership aims to create a more efficient and transparent trading environment that supports business growth across sub-Saharan Africa.

With inputs from WAM