DP World Trade Finance and South Africa’s Nedbank CIB have teamed up to extend working capital solutions to businesses facing liquidity challenges across Sub-Saharan Africa.

Under the agreement, DP World Trade Finance has launched a supply chain finance solution on its platform, with Nedbank as the financier, which allows DP World’s suppliers in the region to access receivables financing.

DP World Trade Finance and Nedbank have also entered into a risk-sharing agreement allowing both firms to share risk in mutually beneficial transactions, which DP World Trade Finance says will “enhance the trade finance availability to businesses across the region”.

One such initiative is the Virtual Farmer programme established by Specialised Agri Solutions. DP World Trade Finance and Nedbank are collaborating through this programme to provide enhanced credit to farmers for procurement of inputs for crop cultivation, including seed, fertiliser and diesel.

“A significant portion of trade from the region originates from businesses that face challenges in accessing trade finance solutions that would allow them to participate in global trade opportunities,” DP World notes.

Access to trade and supply chain finance is a significant problem in Sub-Saharan Africa. Many businesses suffer from a lack of detailed credit information and a poor level of digitalisation, making financing expensive if available at all.

DP World Trade Finance’s partnership with Nedbank follows a deal with Standard Bank in 2023 that also aimed to increase working capital availability for African companies.

Outside the region, DP World has partnered with lenders across the developing world. It announced in February that its partnership with the UAE’s export credit agency financed over US$250mn in a year to aid the country’s transition away from oil dependence.

It has also signed a deal with Bahrain-based lender BKK to improve the operational efficiency of its trade finance offering.