Johannesburg — Tradeshift, a leader in supply chain payments and marketplaces launched a ZAR25 billion ("USD1.5 billion") COVID-19 Instant Supplier payment scheme for businesses in South Africa and selected African markets in partnership with Raindew Trade, a trade and supply chain financing platform providing supply chain solutions to corporations in Africa and other selected markets.
Launched off the back of the recent roll-out of Tradeshift Engage and a similar USD55 billion Instant Supplier Payment program with Denmark's Export Credit Agency, the initiative addresses the cash flow and liquidity challenges in African supply chains.
Underlined by the current COVID-19 economic environment, weakness in African supply chains contribute to the realisation that digital supply chain management and payment infrastructure is no longer an investment in the future.
Utilizing the Tradeshift platform, the Instant Supplier Payment scheme will inject liquidity into the market and accelerate digitisation in supply chains at scale and with speed building a true digital collaboration between suppliers, buyers, and financing institutions.
Providing economic relief to corporate buyers and suppliers affected by the COVID-19 pandemic and unclogging cash flow impact, the Instant Supplier Payment directly addresses the concerns in the African supply chain.
Through upfront and early payments to suppliers, corporate buyers can request payments in advance to pre-qualified suppliers to be made on their behalf, with credit payment terms of 21 to 360 days
Additionally, the Instant Supplier Payment enables to export and import financing solutions for cross-border trades, allowing exporters to get paid upfront or on the same day of their export shipment.
Commenting on the topic, Dan Quinn, General Manager - Middle East & Africa Region at Tradeshift, added, "Today, industries of scale across the region must start with the path to recovery, but they also need to look beyond just recovery, which means re-thinking the foundation and infrastructure their core operations are built on."
"Now is the time for businesses to commit to closing their digital gaps. The smart starting point today is digitising core infrastructure, supply chain management, and invoicing and payment systems. These are essential to help get cash flowing again in the short-term, protect business continuity in the face of an uncertain future, and building a strong, core foundation for a prosperous, sustainable future."
Allan Musona, Executive Director and co-founder of Raindew Trade added, "Covid-19 forced all of us to develop a deeper and more concrete understanding of digital infrastructure. We have mobilized the full spectrum of our digital infrastructure to contribute to the global fight against Covid-19, to enable sustainable recovery of supply chains and provide support for SMEs who are essential for global trade."
This initiative provides an immediate solution for infrastructure issues and sets the foundation for post-COVID economic recovery, injecting liquidity in corporate supply chains and digitising procure to pay and supply chain processes in South Africa and select African markets.
Tradeshift drives supply chain innovation for the digitally connected economy. As the leader in supply chain payments and marketplaces, the company helps buyers and suppliers digitize all their trade transactions, collaborate on every process, and connect with any supply chain app. More than 1.5 million companies across 190 countries trust Tradeshift to process over half a trillion USD in transaction value, making it the largest global business network for buying and selling. Discover commerce for all at tradeshift.com.