A R25-billion Covid-19 Instant Supplier Payment Scheme and digitisation drive has been launched for private and public sector institutions in South Africa and selected African markets, supply chain payments company Tradeshift and trade and supply chain finance and services platform Raindew Trade said in a July 2 statement.
The WePayNow Initiative will inject liquidity into supply chains at scale and with speed and build true digital collaboration between suppliers, buyers and financing institutions. It was launched on the back of the recent roll-out of Tradeshift Engage and a similar $55-billion Instant Supplier Payment programme with Denmark's Export Credit Agency.
“Supply chain disruptions, including as a result of Covid-19, have forced companies to embrace digital transformation of supply chains and business processes,” said Tradeshift Middle East & Africa GM Dan Quinn.
“Business leaders across the region are quickly realising they can no longer delay digitising core operating infrastructure that is essential to business continuity."
“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 Raindew Trade founder and executive director Allan Musona.
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.
"The outbreak of the Covid-19 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 cash ﬂow pressure, with many on the brink of collapse and in urgent need of cash and liquidity," the companies said in the statement.
The new initiative addresses the cash flow 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 billions of dollars of liquidity into selected African markets, including South Africa, through upfront and early payments to suppliers.
Corporate buyers can request upfront payments to prequalified suppliers to be made on their behalf, with credit payment terms of 30 to 360 days. Suppliers can request upfront or early payments, within 24 to 48 hours after approval of invoice for payment.
"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.
"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,” concluded Musona.
Tradeshift drives supply chain innovation for the digitally connected economy, and helps buyers and suppliers digitise all their trade transactions, collaborate on every process, and connect with any supply chain app. Raindew Trade provides working capital and supply chain solutions to corporates and public sector institutions in Africa and selected markets in Africa.