Demica, a FinTech specializing in supply chain finance solutions, has unveiled its expansion of supply chain finance to Nigerian businesses, including SMEs. This move aims to enhance working capital optimization and liquidity through a new banking partnership between African Export-Import Bank (Afreximbank) and Sterling Bank.
Afreximbank and Sterling Bank have collaborated to introduce the innovative AFREXIMBANK TRADELINK in Nigeria, harnessing Demica’s proven payables finance technology and intuitive supplier onboarding tool.
Gwen Mwaba, Director and Global Head of Trade Finance at Afreximbank, emphasized, “The launch in Nigeria marks Afreximbank’s initial step towards introducing payables finance across Africa in collaboration with leading African financial institutions. This product, employing world-class technology and a collaborative delivery model, aligns with the bank’s vision of transforming Africa’s trade and will contribute to reducing the trade finance gap in Africa, especially for the SME segment.”
This new partnership in Nigeria represents a unique and innovative arrangement that leverages the complementary strengths of both banks to provide a comprehensive market-leading solution to Nigerian corporates and their suppliers. Under this partnership, Afreximbank offers US Dollar and Euro financing, while Sterling Bank provides financing in Naira, enabling suppliers to Nigerian corporates to access funding in both local and foreign currencies as needed.
Abubakar Suleiman, Managing Director of Sterling Bank, affirmed, “Sterling Bank is committed to meeting the trade finance needs of Nigerian corporates and their suppliers, and we are proud to introduce this much-needed product for the benefit of Nigerian businesses in partnership with Afreximbank.”
The payables finance product allows suppliers to access funding by obtaining early payment for invoices approved for payment by their corporate buyers. This enables buyers to continue receiving trade credit from the suppliers while allowing suppliers to monetize their trade receivables through the early payment received, thereby improving their working capital position and fostering business growth.
Maurice Benisty, Chief Commercial Officer at Demica, expressed excitement, stating, “We are thrilled that our technology is driving forward the expansion of supply chain finance in Nigeria, in partnership with Afreximbank and Sterling Bank. Across Africa, there is significant unmet demand for this type of finance to meet evolving requirements for working capital and liquidity, especially in the SME sector. This payables finance solution will facilitate the growth of trade in and from Africa, further demonstrating the value that these solutions bring to the real economy.”
Source: ibsintelligence.com
