DP World Trade Finance and J.P. Morgan have formed a strategic partnership designed to improve access to working capital in emerging markets, where supply chain bottlenecks and limited credit availability continue to restrict trade. The global trade finance shortfall, currently estimated at $2.5 trillion, has hindered growth by preventing small and mid-sized businesses from accessing affordable funding.
Under the agreement, the two firms will share risk on trade finance transactions. Their first joint deal funded cocoa procurement from the Ivory Coast for a leading global food company, unlocking over $70 million in annual purchasing capacity and directing vital liquidity into the local economy.
Industry analysts note that while fintech players like Drip Capital and others have started utilising data analytics and invoice finance to support SMEs in markets such as India and Mexico, this partnership represents a scaled-up model backed by global infrastructure and capital. Experts note that logistics-finance integrated models are crucial in reducing barriers for SMEs that are excluded by traditional lenders due to insufficient credit history.
This move mirrors broader trends in trade finance innovation. A December 2024 partnership between HSBC and the World Bank’s IFC launched a $1 billion facility to support banks in 20 countries, also targeting the $2.5 trillion gap. Regulators in Africa and Central Asia have begun supporting digital trade documentation and open credit scoring, which may further facilitate the expansion of such models.
