Partnership expands emerging market trade

Many companies in developing regions struggle to access affordable credit due to insufficient data on creditworthiness, especially amid ongoing supply chain disruptions, say the two.

“This is a significant step in our mission to bridge the global trade finance gap and help businesses tap into new sources of funding,” said Raj Jit Singh Wallia, board member, DP World Trade Finance.

The collaboration will use DP World’s logistics expertise and J.P. Morgan’s financial capabilities to de-risk transactions and make trade finance more accessible.

“By leveraging risk-sharing mechanisms and combining them with logistics in one ecosystem, we reduce the overall credit risk profile and enhance liquidity in emerging markets,” added Singh Wallia.

The partnership’s first success story involved financing cocoa procurement for a leading global food company in Ivory Coast, a key agricultural export hub. The deal unlocked over US$70 million in annual procurement potential and injected vital liquidity into the local economy.

The two institutions plan to expand their efforts into other underserved regions, including central Asia and sub-Saharan Africa.

James Fraser, global head of trade & working capital at J.P. Morgan, added: “Our collaboration with DP World Trade Finance allows us to offer innovative financing solutions that provide working capital to businesses while mitigating risk through DP World’s expertise.”