Nedbank Corporate and Investment Bank, the Johannesburg-based bank, has announced a strategic partnership with UAE logistics provider DP World Trade Finance to increase the availability of trade finance solutions and boost trade in Sub-Saharan Africa.
The two will collaborate to establish risk-sharing agreements and provide supply chain finance to DP World’s suppliers in the region. This is expected to help businesses in sub-Saharan Africa to facilitate the movement of goods, improving trade flows both within the continent and globally.
The initiative was designed to address the working capital challenges faced by businesses across sub-Saharan Africa: the IFC and WTO estimate a trade finance shortage of as much as $14 billion each year for the four biggest economies in the region, causing exports to be stifled by up to $26 billion.
Businesses in sub-Saharan Africa face persistent barriers to trade finance access, stemming from limited data on their creditworthiness – which contributes to perceived risk – and a lack of control over the underlying trade transactions. This makes it difficult for companies to secure the financing they need to expand operations to global markets.
As part of this collaboration, DP World has launched a supply chain programme on its platform to provide its sub-Saharan African suppliers with early payment access on approved receivables. This programme, with Nedbank as the financier, provides a more affordable trade financing solution compared to traditional options and is expected to address companies’ working capital constraints in a widely accessible way.
Anél Bosman, Group Managing Executive at Nedbank CIB, said, “Our partnership with DP World Trade Finance highlights Nedbank’s commitment to drive sustainable growth and support growth across sub-Saharan Africa. 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.”
Mohammed Akoojee, CEO & Managing Director for sub-Saharan Africa at DP World, said, “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 partnership would improve sub-Saharan African trade by enabling businesses to access much-needed working capital and helping them grow.
By combining their financial and logistical expertise, Nedbank CIB and DP World hope to improve transparency in the wider trade finance ecosystem and facilitate sustainable development in the region.
