Demica, the leading fintech specialising in supply chain finance solutions, announces its cutting-edge approved payables finance technology is underpinning the expansion of supply chain finance to Nigerian businesses, including SMEs, transforming working capital optimisation and liquidity through a new banking partnership.

African Export-Import Bank (Afreximbank) and Nigeria-based Sterling Bank have partnered to introduce the innovative AFREXIMBANK TRADELINK in Nigeria, leveraging Demica’s proven payables finance technology as well as its intuitive supplier onboarding tool. By partnering with Demica, Afreximbank, and Sterling Bank are providing a major opportunity for Nigerian businesses to benefit from payables finance, a solution with multiple advantages for both buyers and suppliers.

Demica is a leading global fintech specialising in working capital solutions built on a track record of trust and achievement. The company has been working with Afreximbank to provide payables finance across Africa as part of Afreximbank’s strategy to boost Africa’s share of global trade.

The new partnership in Nigeria is a unique, innovative arrangement that leverages the complementary strengths of both banks to provide a comprehensive market-leading solution to Nigerian corporates and their suppliers. Under the partnership, US Dollar and Euro financing is provided by Afreximbank and financing in Naira is provided by Sterling Bank. Suppliers to Nigerian corporates can thus benefit from financing in both local and foreign currency as per their requirements.

The payables finance product enables suppliers to access funding by obtaining early payment for invoices approved for payment by their corporate buyers. The buyers continue to receive trade credit from the suppliers, and the suppliers monetise their trade receivables through the early payment received, enabling them to improve their working capital position and ultimately grow their business.

The financing cost is linked to the credit rating of the corporate buyers, thereby making this product particularly valuable for SME suppliers who may face challenges in accessing bank finance at competitive pricing.

AFREXIMBANK TRADELINK is part of Afreximbank’s digital Africa Trade Gateway (ATG) which provides African corporates and banks with the digital tools they need to access market information and connect with buyers and sellers across the continent. This aim is to achieve efficient marketing and procurement, facilitate Know Your Customer (KYC) procedures, and effect trade payments between African countries in local currencies.

Gwen Mwaba, Director and 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, aligns with the bank’s vision of transforming Africa’s trade, and will contribute towards achievement of the bank’s strategic objective of reducing the trade finance gap in Africa, especially for the SME segment.”

Mr Abubakar Suleiman, Managing Director of Sterling Bank, commented: “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.”

Maurice Benisty, Demica’s Chief Commercial Officer, said: “We’re thrilled our technology is helping drive forward the expansion of supply chain finance in Nigeria, in partnership with Afreximbank and Sterling Bank. Right across Africa there is huge unmet demand for this type of finance to meet fast-changing requirements for working capital and liquidity, especially in the SME sector. This payables finance solution is going to assist the growth of trade in and from Africa, and further demonstrates the value that these solutions bring to the real economy.”