Tuesday, 17 September 2024

Supply Chain Latest: DP World Teams With Nedbank to Finance More Africa Trade - Bloomberg

Supply Chain Latest: DP World Teams With Nedbank to Finance More Africa Trade - Bloomberg

Port and logistics giant DP World is teaming up with Nedbank, a Johannesburg-based lender, to expand trade financing to small businesses facing working-capital challenges across sub-Saharan Africa.

According to the deal announced Tuesday, UAE-based DP World has launched a supply chain finance program on its platform. Nedbank acts a the financer, letting DP World’s suppliers in the region have access to early payments on approved receivables.

The goal of the partnership is to ease capital constraints for suppliers and provide a “more economical financing option” than existing market solutions, the companies said in a statement.

The bigger macroeconomic issue is addressing Africa’s estimated $80 billion to $120 billion trade financing gap. It’s only expected to widen as with more intra-regional commerce under the African Continental Free Trade Area. That pact will create the world’s biggest free-trade zone by area when it becomes fully operational by 2030.

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