Afreximbank, in collaboration with Sterling Bank, has launched an innovative supply chain finance product called Payables Finance in Nigeria. Branded as Afreximbank Tradelink, this product falls under Afreximbank’s digital offerings within the Africa Trade Gateway (ATG) framework.
ATG aims to equip African corporates and commercial banks with digital tools to access market information, connect with buyers and sellers across the continent, facilitate Know Your Customer (KYC) processes, and promote trade payments in local currencies.
Payables Finance, linked to the credit rating of corporate buyers, offers competitive financing to SME suppliers who may face challenges in accessing bank finance. It’s the fastest-growing trade finance product globally, presenting significant opportunities for African businesses.
The partnership between Afreximbank and Sterling Bank leverages the strengths of both institutions to offer a comprehensive market-led solution to Nigerian corporates and their suppliers. Afreximbank will provide financing in US Dollars and Euros, while Sterling Bank will manage financing in naira, enabling suppliers to access financing in both local and foreign currencies.
Haytham ElMaayergi, Executive Vice President of Afreximbank’s Global Trade Bank, sees the launch as a milestone in realizing the bank’s vision of transforming Africa’s trade. He emphasized supply chain finance’s importance in improving trade finance access across the continent.
Gwen Mwaba, Director and Global Head of Trade Finance at Afreximbank, highlighted that the introduction of Payables Finance in Nigeria is just the beginning of Afreximbank’s plans to roll out the product across Africa. The initiative aims to reduce the trade finance gap, particularly for SMEs.
Chukwuka Onuaguluchi, Ecosystem Banking Head at Sterling Bank, expressed the bank’s commitment to meeting Nigerian corporates’ and suppliers’ trade finance needs. He emphasized the importance of this partnership in introducing much-needed financial products to benefit Nigerian businesses.
Afreximbank provides both US Dollar and Euro financing to businesses in its member countries across Africa and in the Caribbean Community (CARICOM) member countries, supporting trade and economic development in the region.
