the financial solution
that has been excluded.
Supply Chain Finance Dev+ offers your business the financial inclusion that has been previously excluded from the business sector.
Your solution
that has been
excluded.
that has been excluded.
Supply Chain Finance Dev+ offers your business the financial inclusion that has been previously excluded from the business sector.
SMMEs
south african context
SMMEs
In South Africa.
The Small, Medium and Micro enterprises (SMMEs) have formed an integral part of South Africa’s economic development policy since democratisation. As it is the case in many other developing countries, SMMEs are seen as the engines of growth and the sector that will provide the most job opportunities.28 Apr 2023.
According to Bhorat et al. (2018), SMMEs in South Africa contributes 56% to employment and around 45–50% to GDP compared to 95% and 70%, respectively for other middle-income economies.02 May 2022.
It is clear that South Africa still has a massive opportunity to create jobs and contribute to GDP through the development of successful and sustainable SMME’s.
traditional supply chain financing
traditional supply
chain financing.
Let’s take a look at what traditional SCF looks like. Supply chain finance is a financial transaction wherein a 3rd party facilitates an exchange by financing the Supplier on the Buyer’s behalf. Typical steps:
Financing arrangement between Buyer & Financier
Buyer and supplier agrees on payment terms
Buyer Issues Purchase Order
Supplier Delivers and Issues Invoice
Financier Pays Invoice immediately at a small discount
Buyer Pays Financier on originally agreed payment terms
but, what about development suppliers?
where do they fit into traditional SCF?
where do they fit in
traditional scf?
They are usually not credit worthy and are forced to pay cash
They usually do not have cash available for purchase
They do not always have the business experience and skill to deliver reliably
result: excluded from
the formal market
from the market
Examples of unsuccessful, high risk/cost strategies typically used to achieve enterprise development goals:
Pay a percentage of contract value upfront for goods or services
Provide development grants in the form of cash payouts
solution: Supply Chain Dev+
Supply Chain Finance Dev+
result: excluded from
finance dev+
Supply Chain Finance Dev+ adds procurement and sourcing support to the normal SCF transaction scope so that businesses can achieve their development goals and measure their impact accurately. Typical Steps:
SMME submits valid order from its Client/Customer to Umsebenzi for funding
Umsebenzi helps SMME to source the goods and pays OEM/Agents (suppliers to SMME) directly
Umsebenzi mentors SMME throughout fulfilment process and ensures successful delivery and invoicing
Normal Supply Chain Finance process is followed from this point until payment is received
benefits
of Traditional SPF
benefits of
traditional scf
Liquidity in the Supply Chain is improved
Customers can extend payment terms
Suppliers can control their cash flow
Suppliers have access to lower interest rates
The Customer-Supplier relationship is strengthened
benefits
of Supply Chain Finance Dev+
benefits of
SCF DEV+
➕ In addition to the benefits of traditional Supply Chain Finance, Supply Chain Finance Dev+ offers the following benefits:
Enterprise development goals achieved
Impact can be measured to a high degree of accuracy
Financial inclusion of previously excluded business sector
we're ready when you are!
we’re ready
when you are!
Ready to achieve your development goals and measure your impact accurately? Get the financial inclusion your business needs.