Nedbank CIB partners with DP World to strengthen trade finance solutions

Nedbank Corporate and Investment Banking (CIB) has announced a strategic partnership with DP World Trade Finance to address the critical working capital challenges faced by businesses across Sub-Saharan Africa (SSA).

This collaboration encompasses supply chain finance initiatives for DP World Trade Finance’s suppliers in SSA and risk-sharing agreements designed to enhance the availability of trade finance across the region.

By improving the availability of these financial resources, the partnership aims to enable businesses in the region to move goods more efficiently, thereby enhancing their working capital and facilitating smoother trade flows both within and beyond the region.

A significant portion of trade originating from SSA is hampered by persistent barriers to accessing essential trade finance solutions, which are crucial for enabling businesses to engage in global markets. These challenges often stem from limited data on creditworthiness and a lack of visibility and control over underlying trade transactions. Such issues amplify the perceived risks within supply chains, making it more difficult for businesses to secure the financing they need to grow and thrive.

As part of this collaboration, DP World Trade Finance has implemented a supply chain finance programme on its platform, with Nedbank CIB as the financier. This programme allows DP World Trade Finance’s suppliers in SSA to access early payments on their approved receivables, addressing the working capital constraints faced by suppliers. This structured programme offers a more economical financing option compared to traditional solutions available in the market, making it an attractive proposition for businesses seeking to optimise their cash flow.

The partnership also extends to the Virtual Farmer programme, a unique and successful initiative established by Specialised Agri Solutions and supported by DP World Trade Finance and Nedbank CIB. This programme, which has been running for 12 seasons, provides enhanced credit to farmers in SSA, ensuring they have the necessary working capital for their daily operations. The Virtual Farmer programme, with its unique features, exemplifies the impact of structured trade finance solutions in supporting the agricultural sector and contributing to the broader economic development of the region.

Anél Bosman, group managing executive at Nedbank CIB, says “Our partnership with DP World Trade Finance highlights Nedbank’s commitment to drive sustainable growth and support growth across SSA. By combining our expertise in structured finance with DP World’s logistics network, we are well-placed to resolve some of 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.”

Through this strategic partnership, Nedbank CIB and DP World Trade Finance are driving forward their mission to improve trade flow and expand business opportunities across Sub-Saharan Africa. By combining DP World Trade Finance's extensive logistics capabilities with Nedbank CIB’s financial expertise, the partnership aims to establish a more transparent and efficient trade ecosystem, paving the way for sustainable economic development throughout the region.

Mohammed Akoojee, CEO and MD for SSA at DP World Trade Finance, added: “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 our 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.”

This article was sponsored by Nedbank CIB.