DP World Trade Finance and Nedbank Corporate and Investment Bank (Nedbank CIB) have announced a strategic partnership aimed at addressing working capital challenges faced by businesses across sub-Saharan Africa.
This collaboration introduces new supply chain finance initiatives and a risk-sharing agreement designed to improve trade finance availability in the region.
The partnership will enable DP World’s suppliers in sub-Saharan Africa to benefit from enhanced trade finance solutions, facilitating faster and broader movement of goods. This move is expected to address significant barriers businesses face, including limited data on creditworthiness and inadequate visibility into trade processes, which amplify perceived risks within the supply chain.
Mohammed Akoojee, CEO & Managing Director for sub-Saharan Africa at DP World, emphasized the impact of the partnership, stating,
“Our collaboration with Nedbank represents a significant advancement in overcoming trade finance challenges and fostering a transparent and efficient trade ecosystem. By merging DP World’s logistics capabilities with innovative financial solutions, we are empowering our suppliers and promoting sustainable economic growth in the region.”
Anél Bosman, Group Managing Executive at Nedbank CIB, echoed this sentiment, noting,
“Our partnership with DP World Trade Finance underscores Nedbank’s dedication to sustainable growth and economic recovery in sub-Saharan Africa. By leveraging our structured finance expertise alongside DP World’s logistics network, we are addressing trade finance challenges and unlocking new growth opportunities.”
Under the new agreement, DP World Trade Finance has introduced a supply chain finance program, with Nedbank CIB providing the financing. This program allows suppliers to access early payments on approved receivables, offering a more economical financing option compared to traditional methods. Additionally, a risk-sharing agreement will enable both firms to distribute risk in joint transactions, thereby increasing overall credit availability.
The Virtual Farmer program, a notable initiative by Specialized Agri Solutions (SAS), exemplifies the partnership’s impact by providing enhanced credit to farmers for essential inputs like seed and fertilizer. This ongoing program highlights the tangible benefits of structured trade finance solutions in the region.
This collaboration signifies a crucial step in transforming trade and advancing DP World’s mission to facilitate trade flow and drive progress across sub-Saharan Africa.
News Source: Dubai Media Office
