DP World Trade Finance and J.P. Morgan collaborate to provide working capital

DP World Trade Finance and J.P. Morgan are collaborating to improve access to working capital in emerging markets, where supply chain disruptions and limited credit continue to hinder trade.

The world is facing a US$2.5tn global trade finance gap[1], hindering the growth of global trade and impacting businesses worldwide. Many businesses are underserved by traditional financial institutions due to limited data on their creditworthiness, making it challenging for businesses to secure affordable credit. This collaboration aims to address this gap and enables both companies to share the risk on trade finance transactions.

The first transaction supported a leading global food company in procuring cocoa from Ivory Coast, one of the world’s most important agri-export regions. This collaboration unlocked over US$70 million in annual procurement opportunities for the client, and brought significant value into an emerging economy like Ivory Coast.

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

“This is one of many transactions stemming from our collaboration with J.P. Morgan. As regions like Central Asia and Sub-Saharan Africa continue to grow, we anticipate our work with J.P. Morgan will continue expanding into new markets.”

James Fraser, Global Head of Trade & Working Capital at J.P. Morgan said, “At J.P. Morgan, we are committed to supporting global trade. 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. Looking ahead, we are excited to work together to explore and broaden access to structured trade finance in pivotal markets through innovative financial frameworks.”