The outbreak of the COVID-19 virus pandemic has caused severe supply chain disruptions and constraints on economies around the world, including African economies. This has left African Businesses under severe liquidity and cashﬂow pressure, with many on the brink of collapse and in urgent need of cash and liquidity.
To inject liquidity into the market and minimise the economic and social impact of COVID-19, Raindew Trade and Tradeshift, the world’s largest B2B e-commerce platform and global leader in cloud-based supply chain payments, marketplaces and apps, today launched a ZAR25 billion (“USD1.5 billion”) COVID-19 Instant Supplier Payment Scheme (“WePayNow Initiative”) and digitisation drive for private and public sector institutions in South Africa and selected African markets.
Launched on 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 liquidity support and digitisation program will inject liquidity into supply chains at scale and with speed and build true digital collaboration between suppliers, buyers and financing institutions. Supply chain disruptions, including COVID-19, have been an absolute stress test for global supply chains and have accelerated the demand for liquidity and the uptake of digital solutions, tools and services, speeding up the global transition towards a digital economy.
According to Raindew Trade, the new initiative addresses the cashflow and liquidity challenge African businesses are facing in the current Covid-19 economic environment. Using the Tradeshift platform, the Instant Supplier Payment Scheme will inject USD billions of liquidity into selected African markets, including South Africa, through upfront and early payments to suppliers. Corporate buyers can request upfront payments to pre-qualified suppliers to be made on their behalf, with credit payment terms of 30 to 360 days. Suppliers can request upfront or early payments (“24 to 48 hours after approval of invoice for payment”).
“Supply chain disruptions, including COVID-19, have forced companies to embrace digital transformation of supply chains and business processes,” said Dan Quinn, General Manager, Tradeshift Middle East & Africa Region. “Business leaders across the region are quickly realising they can no longer delay digitizing core operating infrastructure that is essential to business continuity. We look forward to working with Raindew Trade to inject liquidity in corporate supply chains and digitise procure to pay and supply chain processes in South Africa and selected African markets,” added Quinn.
“The demand and availability of liquidity and digital tools to advance global trade is something which will endure going forward, with benefits for those providing capital and technology as well as those receiving it,” said Allan Musona, Founder and Executive Director, Raindew Trade. I’m excited to be part of this initiative to kickstart trading for African companies and governments in the post COVID-19 environment, at a really pivotal moment in Raindew’s journey.”
Tradeshift, which recently launched its MEA headquarters in Dubai, enables enterprise companies that want to access liquidity and fully digitize their supply chain relationships to do it with speed and efficiency.
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.
ABOUT RAINDEW TRADE
Raindew Trade is a Trade and Supply Chain Financing and Services Platform providing working capital and supply chain solutions to corporates and public sector institutions in Africa and selected markets in Africa. Raindew solutions include supply chain finance & services platforms, marketplaces, network trade platforms, pandemic mitigation supply chain finance and working capital platforms, digital supply chain and procure to pay solutions, payment systems & solutions, tech-enabled digital logistics and distribution platforms, cloud-based business networks and e-commerce platforms, and apps. Contact Raindew Trade to inject liquidity into your supply chain today. Advance global trade at www.raindewtrade.com