WE ARE SPECIALISTS IN IMPACT FOCUSED TRADE FINANCE FOR SUB -SAHARAN AFRICA.
In partnership with International public and private partners, we create innovative and bespoke financing solutions which help to unlock working capital trapped in invoices.
We also work with institutional and private lenders to de-risk lending propositions for Sub-Saharan African exporting SMEs.
At Genesis we believe that SMEs are the engine of economic growth across the African continent.
African SME exporters and traders are taking the lead in agro-industrial transformation on the continent. Unfortunately the majority of trade finance solutions on the continent are not effectively serving the needs of these SMEs with the commercial banks typically providing finance to only the largest businesses.
Clearly, therefore there is a need to increase the number and range of trade finance solutions that are tailored to SME exporters, aggregators and traders.
As stakeholders in the trade finance space Genesis SSA offers more efficient trade finance mechanisms that allow SMEs to expand market share by receiving payments in a timely fashion.
We believe that in order to narrow the USD 110 bn trade finance gap in Africa it is vital to promote cooperation between actors involved in trade finance delivery, including institutions providing financial and non-financial services to SMEs engaged in commodity trading, exporting and marketing.
The use of our trade finance solutions to strengthen value chain management will more effectively integrate SMEs into the global economy.
Receivables Finance Product ("Sinergy 1")
Receivables finance, in our view, is an extremely under-utilised instrument in most of Africa yet its potential to drive efficiency, unlock potential and deliver impact is immense.
Sinergy 1 is our bespoke receivables financing product which leverages on networks, data, structured finance and insurance to deliver timely finance on the basis of outstanding invoices at a very reasonable cost.
Trade Finance in Africa
Trade finance is a fundamental tool for financing both domestic and international trade transactions. A trade transaction is executed between a seller of goods and services as well as a buyer. Various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade.
The most common trade finance instruments for on balance sheet transactions include a number of transactions related to: pre-export loans, post import loans and revolving credit lines.
The most significant impediment for African SMEs in obtaining financial services are stringent bank requirements for obtaining credit, working capital and loans. SMEs are often requested to provide collateral of up to 100% of the value of trade goods, in addition to third party guarantees. The situation is especially challenging for operators in the agriculture sector as the perceived risk of lending is quite high and very difficult for these companies to satisfy collateral requirements.
A recent World Trade Organisation / OECD survey on trade finance confirms these findings and highlights that access to trade finance is one of the biggest obstacles for African SME participation in global value chains.
