Demica has worked with the Shoprite Group – Africa’s largest supermarket retailer – to introduce a new supply chain finance programme.
The programme, the first of its kind in the food retail industry in Africa, provides Shoprite’s suppliers with the opportunity to access capital when they need it. The Demica Dynamic Discounting programme will be implemented via Demica’s market-leading supply chain finance platform and facilitate close collaboration between Shoprite and its suppliers through the easy-to-use portal. It gives suppliers early access to payments and will make it easy for Shoprite to extend the programme to more suppliers as it builds.
This development follows Demica’s recently-announced partnership with Afreximbank, as the UK-based fintech looks to bring much needed supply chain finance solutions to the African continent.
“The unique combination of Shoprite´s footprint in South Africa and Demica´s technology will be the basis for a tremendously successful programme that will benefit hundreds of suppliers in the region.”
Johannes Wehrmann, Managing Director, Corporate Solutions, Demica
"There is a definite need in the market, especially amongst small- and medium-sized suppliers who struggle to access finance through traditional routes. While there are alternatives supplier finance products available, we can provide a better service due to the Shoprite Group's extensive ecosystem, and we expect this initiative to build even stronger supplier relationships."
Jean Olivier, General Manager, Financial Service at the Shoprite Group
The Shoprite Group recognises the importance of supporting resilience in its supply chain. This programme forms a key part of the group’s broader strategy to bring stability to its supplier network.
We are a market-leading fintech, powering the trade finance programmes of the world’s largest trade banks and corporations. Demica’s proposition is simple: our intuitive, cloud-based platform enables financial institutions and corporates to automate and scale their working capital solutions. Today, we have over US$20bn of outstanding programmes running through our platform, across the full spectrum of working capital products. Funded by a diverse range of banks and institutional investors, these programmes enable companies to strengthen their supply chains and redeploy capital to drive growth.
About The Shoprite Group:
Established in 1979, the Shoprite Group has over 40 years’ experience leading food retailing in Africa with more than 2,989 stores and over 145,000 employees. Complemented by furniture, pharmaceuticals, hospitality, ticketing, digital commerce and financial and cellular services, the Shoprite Group is Africa’s largest fast moving consumer goods retailer.