DP World, Nedbank Partner to Expand Trade Financing for African SMEs

AFRICAN BUSINESS AND ECONOMYSeptember 17, 2024 at 3:46 PM UTC

TLDR

DP World and Nedbank collaborate to offer trade financing solutions for SMEs in sub-Saharan Africa.
Supply chain finance program launched on DP World platform, with Nedbank as the financier, providing early payments to suppliers in the region.
DP World expands initiatives through partnerships, including investments in Congo's deep-sea port and running part of a Tanzanian port.

Port and logistics giant DP World has teamed up with Johannesburg-based lender Nedbank to offer trade financing solutions aimed at addressing the working capital challenges faced by small and medium-sized enterprises (SMEs) across sub-Saharan Africa.

Announced on Tuesday, the partnership involves the launch of a supply chain finance program on a DP World platform, with Nedbank acting as the financier.

The initiative will enable DP World’s suppliers in the region to access early payments on approved receivables, providing an economical financing option compared to current market solutions. It follows a recent partnership with BII to build Congo’s first deep-sea port and plans to invest $250m in a deal to run part of a Tanzanian port.

Key Takeaways

This collaboration comes as Africa grapples with a trade financing gap estimated to be between $80 billion and $120 billion, which is expected to grow as intra-regional trade expands under the African Continental Free Trade Area (AfCFTA). SMEs, which represent around 80% of African traders, are especially vulnerable due to limited access to financing. The partnership also includes a risk-sharing agreement between Nedbank and DP World to boost credit availability for farmers and small traders, further supporting businesses in overcoming capital constraints.

Business

Finance

Business Lending

SMEs

SME Financing

DPWorld

Nedbank