African Export-Import Bank (Afreximbank) joins forces with Sterling Bank to launch ‘Payables Finance,’ bolstering supply chain financing in Nigeria.
Afreximbank introduces supply chain finance solution
African Export-Import Bank (Afreximbank), in collaboration with Sterling Bank, is set to revolutionize supply chain finance in Nigeria. Through the introduction of ‘Payables Finance,’ branded as Afreximbank Tradelink, African businesses will gain access to efficient market connections and streamlined procurement processes.
Empowering suppliers
Payables Finance, a dynamic financial tool, allows suppliers to secure early payment for approved invoices, facilitating enhanced working capital management. This initiative not only fosters business growth but also addresses the financing challenges often faced by SME suppliers.
The collaboration between Sterling Bank and Afreximbank marks a significant stride towards bridging the trade finance gap in Nigeria. By leveraging their respective strengths, these institutions are poised to provide comprehensive market solutions to Nigerian corporates and suppliers.
Africa’s trade transformation
Haytham ElMaayergi, Executive Vice President of Afreximbank Global Trade Bank, welcomed the launch as another milestone in realizing the Bank’s vision of transforming Africa’s trade, saying, “Afreximbank identified supply chain finance as a solution for improving access to trade finance in Africa and embarked on a journey to increase penetration through financial intervention and capacity building. The Bank’s Factoring Working Group has done extremely well to provide lines of credit to support factoring and has actively promoted factoring across the continent in collaboration with other institutions.”
“African businesses now have the opportunity to harness the potential of this product, which has been widely adopted globally, at an accelerated pace by learning from the experiences of other regions and using the latest technologies which have been developed,” he said.
Commenting on the partnership, Gwen Mwaba, Director & Global Head Trade Finance, Afreximbank, said, “The launch in Nigeria is a first step in Afreximbank’s plans to introduce Payables Finance across Africa in partnership with leading African financial institutions. The product, which will deploy world class technology and a collaborative delivery model and will contribute towards achievement of the Bank’s strategic objective of reducing the trade finance gap in Africa, particularly for the Small and Medium Enterprises (SMEs) segment.”
Finally, Chukwuka Onuaguluchi, Ecosystem Banking Head at Sterling Bank, added, “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 in partnership with Afreximbank for the benefit of Nigerian businesses.”
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