Absa Bank South Africa wins Best Trade Finance Bank in Africa Award for extending trade and working capital solutions to anchor ecosystems on Trade Management Online

• Absa Bank’s trade finance business grew robustly through a combination of structured and traditional trade products
• New digital trade product and solutions were contextualised to local corporates’ needs
• The bank extended assistance to trade clients during the COVID-19 pandemic

Absa Bank’s trade finance business grew robustly through a combination of structured and traditional trade products

Absa Bank South Africa grew its revenue by more than 30% in 2019. The bank reported an 80% increase in trade flows outstanding and a 20% estimated market share. Its South Africa trade business represents the largest franchise in absolute terms. The new to bank mandates increased on account of its ability to help clients maximise their trading potential and improve end-to-end robust cash flow. The bank used a combination of both traditional trade and structured products such as escrow and structured trade and commodity finance. Absa’s trade finance propositions extend to the anchor ecosystems of notable clients such as Niche Cocoa Industry and AngloGold Ashanti that placed them on a high growth trajectory.

New digital trade product and solutions were contextualised to local corporates’ needs

Absa Bank’s clients were onboarded to its trade finance online platform - Trade Management Online (TMO) app. Absa’s clients can apply, manage, and monitor the progress of their trade product applications and utilisation electronically. The bank successfully onboarded close to 190 new trade clients into TMO. The bank launched a formal escrow service product via the bank's new and amended product assessment process which found extensive application for key international oil trading companies operating across the continent. The solution ensures that all risks, both to the client and the bank, are managed efficiently.

The bank extended assistance to trade clients during the COVID-19 pandemic

The bank took a conscious effort to support growth sectors that provided essential services in their respective markets. It deployed a special task force to support local and critical businesses to continue operations smoothly. A total of $2.2 billion was earmarked to support critical service companies. The bank was aware of supply chain disruptions and offered options of three-to-six month’s moratorium or payment holidays on existing facilities. The Absa transactional banking team has processed a total of 947 requests for the restructuring of existing  facilities such as tenor extensions or payment holidays including interest and capital repayment deferrals to keep afloat and bridge corporates cash shortfalls during the lockdown. Absa has provided assistance to trade clients during the pandemic. A total of 84 trade and working capital transactions amounting to $3 billion were approved.