Today's Edition
DUBAI (WAM)
DP World Trade Finance has partnered with Nedbank Corporate and Investment Bank (Nedbank CIB) in supply chain finance for DP World's suppliers in sub-Saharan Africa (SSA) and a risk-sharing agreement to enhance the trade finance availability to businesses across the region.
These trade finance solutions will enable businesses to move their goods faster and further, helping them improve their working capital while also enabling the flow of trade.
Under the agreement, DP World Trade Finance has implemented a supply chain finance programme on its platform, with Nedbank CIB as the financer, enabling DP World's suppliers in the SSA to access early payments on their approved receivables. This programme addresses the working capital constraints faced by suppliers, offering a more economical financing option compared to available traditional solutions in the market.
These trade finance solutions will enable businesses to move their goods faster and further, helping them improve their working capital while also enabling the flow of trade.
A significant portion of trade from the region originates from businesses that face challenges in accessing trade finance solutions that would allow them to participate in global trade opportunities. These obstacles stem from the limited availability of data on creditworthiness, as well as a lack of visibility and control on the underlying trade, which exaggerates the perceived risks within the supply chain.
Nedbank CIB and DP World Trade Finance also signed a risk-sharing agreement to allow both firms to share risk in mutually beneficial transactions, thereby increasing the overall credit available to clients.
Mohammed Akoojee, CEO and Managing Director for sub-Saharan Africa at DP World, said, "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, stated, "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."
