DP World and Nedbank Join Forces to Support SMEs in Sub-Saharan Africa 

DP World and Nedbank Join Forces to Support SMEs in Sub-Saharan Africa

The commercial landscape in Sub-Saharan Africa faces significant financial challenges, particularly for small and medium-sized enterprises (SMEs). In response to these constraints, DP World Trade Finance has partnered with Nedbank Corporate and Investment Bank (Nedbank CIB) to offer innovative financing solutions aimed at improving access to credit and supporting business growth in the region. This strategic partnership focuses on the implementation of a supply chain finance program, which will allow DP World’s suppliers to access early payments on their approved receivables.

 A Response to Financing Challenges in Sub-Saharan Africa

Sub-Saharan Africa suffers from a trade finance deficit estimated between $80 billion and $120 billion, a gap exacerbated by the development of intra-regional trade under the African Continental Free Trade Area (AfCFTA). SMEs, which represent around 80% of Africa’s trading businesses, struggle to access the necessary financing for their growth. This lack of working capital limits their ability to fully participate in global trade opportunities.

DP World, in partnership with Nedbank, has taken the initiative to address this issue by offering more affordable financing solutions than those traditionally available on the market. Businesses in the region will be able to transport their goods faster, improve their cash flow, and access financing to meet their operational needs.

 The Impact of the Financing Program

Launched via DP World’s platform, this supply chain finance program allows its suppliers to access early payments, a critical solution to alleviate working capital challenges. This system aims to improve trade flows while reducing perceived risks within supply chains. It directly addresses the needs of businesses that face limited access to financing solutions, enabling them to actively participate in global trade.

Mohammed Akoojee, CEO for Sub-Saharan Africa at DP World, explained that “this partnership represents a significant step forward in addressing the trade finance challenges in Africa. By combining DP World’s logistics capabilities with innovative financial solutions, we are enabling our suppliers to thrive and fostering a more transparent and efficient trade ecosystem.”

 A Collaboration for Sustainable Growth

In parallel, Nedbank and DP World have also established a risk-sharing agreement, allowing both companies to share risks in mutually beneficial transactions. Anél Bosman, Group Managing Executive at Nedbank CIB, emphasized that “this collaboration demonstrates our commitment to supporting economic recovery and sustainable growth in Sub-Saharan Africa. By combining our structured finance expertise with DP World’s logistics network, we are improving trade flows and helping businesses overcome financial constraints.”

The impact of this collaboration goes beyond trade finance. A program like “Virtual Farmer,” developed in partnership with Specialized Agri Solutions, illustrates the importance of such initiatives. Through this program, DP World and Nedbank support farmers by providing the necessary financing to purchase agricultural inputs such as seeds and fertilizers.

 Conclusion

The partnership between DP World and Nedbank marks a key step in transforming trade finance in Sub-Saharan Africa. With innovative financing solutions, this program not only helps SMEs overcome working capital challenges but also contributes to the sustainable growth of trade in the region.