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

This collaboration encompasses supply chain finance initiatives for DP World’s suppliers in sub-Saharan Africa and risk-sharing agreements aimed at enhancing the availability of trade finance across the region.

This multifaceted partnership between Nedbank CIB and DP World Trade Finance includes initiatives in supply chain finance and risk-sharing agreements, to provide businesses in sub-Saharan Africa with access to trade finance solutions.

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.

As part of this collaboration, DP World Trade Finance has implemented a supply chain finance programme on its platform, with Nedbank as the financier.

This programme allows DP World’s suppliers in sub-Saharan Africa to access early payments on their approved receivables and to address the working capital constraints faced by suppliers.

This structured programme is said to offer a more economical financing option compared with traditional solutions available in the market.

“A significant portion of trade originating from sub-Saharan Africa 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,” Nedbank CIB says in a statement.

By combining DP World’s logistics capabilities with Nedbank CIB’s financial expertise, the partnership aims to establish a more transparent and efficient trade ecosystem.