DP World partners with Nedbank to finance more Africa trade

Image credit: Waldo Swiegers/ Getty Images

Dubai’s DP World has partnered with South Africa’s Nedbank to expand trade financing to small businesses facing working capital challenges across sub-Saharan Africa, the companies said on Tuesday.

Trade finance solutions will enable businesses to move their goods faster and improve their working capital while enabling the flow of trade.

Under the deal, DP World Trade Finance has launched a supply chain finance programme on its platform. Nedbank acts as the financer, allowing the logistics and supply chain giant’s suppliers in the region to access early payments on approved receivables.

“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,” said Mohammed Akoojee, CEO and managing director for sub-Saharan Africa at DP World.

The initiative addresses the working capital constraints faced by suppliers, offering a more economical financing option than traditional solutions on the market.

DP World said a significant portion of trade from the sub-Saharan Africa region originates from businesses that face challenges in accessing trade finance solutions.

The obstacles stem from the limited availability of data on creditworthiness and a lack of visibility and control over the underlying trade, which exaggerates the perceived risks within the supply chain.

DP World and Nedbank also signed a risk-sharing agreement aimed at boosting credit availability for farmers and other small traders.

Trade financing shortfalls hurt small and medium-sized companies, which make up around 80 per cent of African traders, and whose banks struggle with regulatory costs to finance their merchant activities profitably, according to the International Trade and Forfaiting Association.

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