The African Export-Import Bank ( Afreximbank ) has collaborated with Sterling Bank to introduce a new supply chain finance product 'Payables Finance' in Nigeria. This product, known as 'Afreximbank Tradelink,' is part of Afreximbank's digital offerings within the Africa Trade Gateway (ATG).

ATG equips African companies and commercial banks with digital tools to access market information, connect with buyers and sellers across the continent for efficient marketing and procurement, facilitate Know Your Customer (KYC) processes, and promote trade payments between African countries in local currencies. Payables Finance allows suppliers to access financing from the banking system by obtaining early payment for invoices approved for payment by their corporate buyers. They then continue to receive trade credit from the suppliers, while the suppliers finance their working capital through the early payment received, enabling business growth.

The financing cost is tied to the credit rating of the corporate buyers, making this product particularly beneficial for SME suppliers facing challenges in accessing bank finance at competitive rates. Payables Finance is the fastest-growing trade finance product globally, presenting significant opportunities for African businesses, as the companies see it. The partnership with Sterling Bank is a unique and innovative arrangement using the complementary strengths of both institutions to provide a comprehensive market-led solution to Nigerian corporates and their suppliers.

Under this arrangement, Afreximbank will provide financing to corporates and banks in both US Dollars and Euros, while Sterling Bank will manage financing in Naira. Suppliers of Nigerian corporates can benefit from financing in both local and foreign currency as per their requirements. .