• Thursday, May 30, 2024
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Afreximbank, two others unveil new product for procurement support

Afreximbank, two others unveil new product for procurement support

African Export-Import Bank (Afreximbank), Woodhall Capital, and Sterling Bank have launched a trade link digital supply chain finance solution to support suppliers and buyers in procurement.

This was revealed at Afreximbank’s supply chain financing product launch and workshop on Tuesday in Lagos.

“Africa’s trade gateway for digital supply chain finance solution is Afreximbank Trade Link,” said Vinay Chhabra, head of supply chain finance at Afreximbank.

He said the product description is payable finance where “the buyer receives goods from the supplier,  approves invoices for payment and transmits accounts payable file, supplier selects invoices for immediate payments.”

“The bank receives payment order, the bank deposits money to the supplier’s bank account and the bank receives money from the buyer,” Chhabra added.

He said payables finance is the fastest-growing trade product globally and greater adoption will benefit Nigerian businesses.

Mojisola Hunponu-Wusu, founder and CEO of Woodhall Capital Limited said the supply chain is not getting visibility from banks, and financial institutions, and today, the Afreximbank TradeLink product has a lot of support.

“Afreximbank support takes docile people and gives a platform to global stages to be able to narrate the African dream and story by Africans and give us the confidence to know that the solution to this continent is known by African people.

“Today, we are witnessing the beginning of receivable financing, successful all around the world. We try to make it easy and engage partners, suppliers who we will make it easy for them to trade,” she said.

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN) who was represented by Abayomi Arogundade, bank examiner at CBN, said Nigeria has a lot of responsibilities that are yet to be actualised.

“Supply chain finance has become the fastest growing trade product globally and this is because it enables suppliers who are often small and medium-sized enterprises to access banks’ tentative capital at a lower cost through an internet-based system for simplicity, speed, and minimal operational risks.

“I believe that this workshop will create the necessary awareness for various stakeholders in the financial industry and the SMEs and stimulate their interest with increasing supply chain by factoring or forfeiting as a preferred alternative to traditional banks,” he added.