back Back

Demica expands supply chain finance solutions in Nigeria

By Delisha Fernandes

May 07, 2024

  • Afreximbank
  • DEMICA
  • FinTech Africa
Share

DemicaDemica, the FinTech specialising in supply chain finance solutions, has announced the expansion of supply chain finance to Nigerian businesses, including SMEs, transforming working capital optimisation and liquidity through a new banking partnership between African Export-Import Bank (Afreximbank) and Sterling Bank.

African Export-Import Bank and 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.

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.”

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.

Abubakar Suleiman, Managing Director of Sterling Bank, said, “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.”

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.

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.”

Previous Article

May 07, 2024

U GRO Capital acquires ‘MyShubhLife to drive embedded financing for small merchants

Read More
Next Article

May 07, 2024

Quicklly and Visa to deliver next-gen cross-border payment solutions in India

Read More






IBSi Daily News Analysis

UAE, money transfer

May 23, 2024

Afreximbank

By 2034, the digital remittance market is expected to reach $83.2bn, research reveals

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

Newgen Software onboards Finastra to expand market reach

Read More

May 24, 2024

Capital on Tap partners with Plaid in the UK

Read More

May 24, 2024

UnaFinancial & JSCB Microcreditbank to offer lending services in Uzbekistan

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023