DP World Trade Finance and JP Morgan have formed a partnership to improve access to working capital in emerging markets. This collaboration comes amid a persistent $2.5 trillion global trade finance gap, which limits international trade and economic growth worldwide.
Tackling Trade Finance Challenges Through Partnership
Many businesses in developing economies struggle to secure affordable credit. This is often due to limited data on their creditworthiness. As a result, traditional financial institutions tend to underserve these markets. Through this partnership, DP World Trade Finance and JP Morgan will share risks on trade finance transactions. This approach will broaden access to funding for underserved sectors.
The first joint transaction supported a global food company’s cocoa procurement from Ivory Coast. This country is one of the world’s key agricultural exporters. The deal unlocked over $70 million in annual procurement opportunities. This created significant value for both the client and the Ivorian economy.
Enhancing Liquidity and Managing Risks in Emerging Economies
Raj Jit Singh Wallia, Board Member of DP World Trade Finance, emphasized the partnership’s impact:
“This is a significant step in our mission to bridge the global trade finance gap. By combining risk-sharing mechanisms with logistics expertise, we reduce credit risk and improve liquidity in emerging markets.”
The partnership plans to expand beyond West Africa. Regions such as Central Asia and Sub-Saharan Africa will also benefit. These areas still face major challenges in accessing trade finance.
Innovating Structured Finance Solutions for Global Trade
James Fraser, Global Head of Trade & Working Capital at JP Morgan, highlighted the collaboration’s goals:
“At JP Morgan, we are committed to supporting global trade. Working with DP World Trade Finance lets us offer innovative financing solutions. These provide working capital to businesses while managing risk through DP World’s expertise.”
Looking forward, the companies will explore new structured trade finance frameworks. Their goal is to widen access to capital and meet the needs of businesses in fast-growing markets.
