The new system costs ZAR25 billion, or $1.5 billion USD, and the aim, according to the release, is to help businesses with cash flow issues related to the pandemic. It comes on the heels of the also-recently-launched Tradeshift Engage and another program, a $55 billion partnership with Denmark's Export Credit Agency that aimed to do the same thing.
Raindew Trade is a trade and supply chain firm that targets businesses in South Africa and other select African markets.
The new instant supplier scheme is based on the reality for many businesses, which is that the weakness in the African supply chains has to be addressed as soon as possible. The new system will boost liquidity and digitization, and help bridge the gaps for suppliers, buyers and financing institutions, the press release says.
The new system will help boost upfront and early payments for suppliers and let corporate buyers request payments in advance, of credit payment terms from 21 to 360 days, for pre-qualified suppliers. And, new export and import financing solutions for cross-border payments will be available. Exporters will be able to get paid up front or on the same day as their shipments, the release says.
Dan Quinn, general manager for the Middle East & Africa region with Tradeshift, said the new system is about pushing innovation.
"Now is the time for businesses to commit to closing their digital gaps," he said, according to the release. "The smart starting point today is digitizing 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."
Tradeshift Engage, the company's new supplier portal, launched recently. PYMNTS reported that the program's purpose is to speed up digitization during the current pandemic economy.