Demica to provide technology platform for IFC’s Global Supplier Chain Finance
Demica today announced that its supply chain finance platform will be used to support IFC’s Global Trade Supplier Finance program. Demica’s state-of-the-art supply chain finance platform and its supplier onboarding tools will help enhance the global reach of IFC’s program, which links funding rates to how well suppliers’ meet environmental and social standards.
“We are excited to work with Demica for the next stage of development of our supplier finance program,” said Farzin Mirmotahari, IFC senior operations officer working with the supplier finance program. “By combining IFC’s experience in emerging markets with Demica’s technology and product expertise, we aim to accelerate sustainable practices.”
Demica’s payables finance platform will be used by IFC’s program, which since 2012 has disbursed about US$4.7bn to some 1,000 suppliers across 18 countries via web-based supplier finance platforms or indirectly through financial institutions. IFC is a member of the World Bank Group.
“IFC’s program allows corporate buyers to extend supply chain finance deeper into emerging markets, where very often banks are unable or unwilling to provide financing to suppliers,” Maurice Benisty, chief commercial officer of Demica, said “Demica and the IFC are fulfilling a gap in the market, improving the practices and relationships between buyers and suppliers.”
IFC’s Global Trade Supplier Finance program, known as GTSF, helps address the shortfall in access to finance for small and medium-sized enterprises by providing short-term working capital and the interest rates are linked to sustainability standards in order to promote better environmental and social practices.
