Risk sharing/co-lending initiatives to increase overall credit available for clients in SSA
Businesses across sub-Saharan Africa that face working capital challenges, stand to benefit from a new partnership between DP World Trade Finance and Nedbank Corporate and Investment Bank (“Nedbank CIB”).
The partnership includes initiatives 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.
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. In response, DP World launched DP World Trade Finance to bridge the trade finance gap, connecting businesses with financial institutions and providing trade finance facilities directly from its own balance sheet.
Mohammed Akoojee, CEO & 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. This collaboration underscores our commitment to transforming trade and unlocking opportunities for sustainable economic growth in the region.”
Anél Bosman, Group Managing Executive at Nedbank CIB, says: “Our partnership with DP World Trade Finance highlights Nedbank’s commitment to driving sustainable growth and supporting economic recovery across sub-Saharan Africa. 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 partnership demonstrates how we leverage our unique ecosystem expertise to see unexpected connections and create sustainable growth.”
Under the agreement, DP World Trade Finance has implemented a supply chain finance program 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 program addresses the working capital constraints faced by suppliers, offering a more economical financing option compared to available traditional solutions in the market.
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. One such initiative is the Virtual Farmer program, established by Specialized Agri Solutions (SAS). Through this program, DP World Trade Finance and Nedbank CIB are collaborating to provide enhanced credit to farmers, ensuring they have the necessary working capital to procure inputs such as seed, fertilizer and diesel for crop cultivation. This programme, which has been running for the past 12 seasons, exemplifies the impact of such structured trade finance solutions.
Through these collaborative efforts, DP World Trade Finance and Nedbank CIB are advancing DP World’s mission to make trade flow and change what’s possible for everyone.
