Entertainment

Afreximbank and Sterling Bank Collaborate to Introduce Supply Chain Finance Solution in Nigeria

Afreximbank, in collaboration with Sterling Bank, is set to introduce a new supply chain finance product called ‘Payables Finance’ in Nigeria.

Thank you for reading this post, don’t forget to subscribe!

This innovative offering, branded as ‘Afreximbank Tradelink,’ falls under Afreximbank’s digital offerings within the Africa Trade Gateway (ATG) platform.

Payables Finance allows suppliers to access financing by receiving early payment for invoices approved by their corporate buyers, facilitating working capital growth.

The financing cost is tied to the credit rating of corporate buyers, making it especially beneficial for SME suppliers facing challenges in accessing affordable bank finance.

The partnership between Afreximbank and Sterling Bank aims to provide a comprehensive market-led solution to Nigerian corporates and their suppliers.

READ ALSO  Passenger zooms off with danfo bus in Lagos as driver comes down to argue with conductor

Under this arrangement, Afreximbank will offer financing in US Dollars and Euros, while Sterling Bank will handle financing in Naira, allowing suppliers to access financing in both local and foreign currencies.

Haytham ElMaayergi, Executive Vice President of Afreximbank Global Trade Bank, sees the launch as a significant step in realizing Afreximbank’s vision of transforming Africa’s trade, emphasizing the importance of supply chain finance in improving access to trade finance on the continent.

Gwen Mwaba, Director & Global Head Trade Finance at Afreximbank, views the launch in Nigeria as the first step in Afreximbank’s plans to introduce Payables Finance across Africa in collaboration with leading African financial institutions.

READ ALSO  IGP orders mass promotions for junior police officers

This initiative aligns with Afreximbank’s strategic objective of reducing the trade finance gap in Africa, particularly for SMEs.

Chukwuka Onuaguluchi, Ecosystem Banking Head at Sterling Bank, reaffirms Sterling Bank’s commitment to meeting the trade finance needs of Nigerian corporates and suppliers, highlighting the significance of this partnership in benefiting Nigerian businesses.

Afreximbank’s Payables Finance initiative will not only be rolled out in Nigeria but also expanded to other African countries in partnership with local financial institutions.

This expansion will enhance local currency financing capabilities across the continent, with capacity-building events aimed at increasing awareness of supply chain finance and its benefits.

READ ALSO  DÑA Test Just Revealed I’m Nøt The Biølogical Father Of My Son

The product rollout in Nigeria will be complemented by a workshop targeting corporate institutions and banks, organized in collaboration with Woodhall Capital, a leading finance company in Nigeria.

To support the delivery of these new financial products, Afreximbank has partnered with UK-based fintech Demica, a leader in working capital solutions.
supply chain finance platform, utilized by leading banks worldwide, will power Afreximbank’s supply chain finance solutions in Africa, ensuring efficient and effective delivery of financial services to businesses across the continent.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button