DP World and Nedbank partner to boost SMME financing in Africa

AFRICA – DP World has partnered with Nedbank to expand trade financing for small, medium, and micro enterprises (SMMEs) across sub-Saharan Africa, offering relief to companies struggling with working-capital challenges.

The collaboration, announced earlier this week, aims to support African suppliers by offering a supply chain finance program on DP World’s platform.

Nedbank will act as the financier, allowing DP World’s suppliers to access early payments on approved receivables. This is expected to ease the capital constraints that SMMEs often face in the region.

“By combining DP World’s 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,” said Mohammed Akoojee, CEO and Managing Director for Sub-Saharan Africa at DP World.

The partnership is seen as a more cost-effective solution than many existing market alternatives, which often pose financial strain on small businesses.

The African Continental Free Trade Area (AfCFTA) agreement is expected to boost intra-regional trade, but this will further exacerbate the estimated USD 80-USD 120 billion trade financing gap across Africa.

According to the International Trade and Forfaiting Association, small businesses make up around 80% of traders in Africa, yet many face challenges due to banks’ regulatory costs, which prevent profitable financing of merchant activities.

This initiative aims to close that gap by providing businesses with more accessible financing solutions.

“By combining our expertise in structured finance with DP World’s logistics network, we are well-placed to tackle the region’s trade finance challenges,” noted Anél Bosman, group managing executive at Nedbank CIB.

In addition to providing financing to SMMEs, Nedbank and DP World signed a risk-sharing agreement to increase credit availability for farmers and small traders, a critical move for the agricultural sector.

Expansion into the DRC

DP World’s commitment to African economic growth doesn’t end with its collaboration with Nedbank.

The company is also working with British International Investment (BII) to build the first deepwater container port in the Democratic Republic of Congo (DRC).

This USD 35 million investment aims to improve the DRC’s access to international markets and support economic growth in the region.

“The Port of Banana will play a major role in supporting the economic aspirations of millions living in DRC,” said Chris Chijiutomi, Managing Director and Head of Africa for BII.

The port is expected to be a vital hub for international trade, further demonstrating DP World’s role in enhancing Africa’s trade infrastructure.

This partnership follows earlier collaborations between DP World and BII, including modernization projects at ports in Senegal, Egypt, and Somaliland.

Both companies see the potential to unlock further trade opportunities and are continuing to invest in similar projects across Africa.