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DP World Trade Finance has formed a strategic partnership with JPMorgan Chase to address a $2.5 trillion global trade finance gap that is constraining growth most acutely in emerging markets.
The partnership’s first transaction supported a leading global food company’s cocoa procurement from Côte d’Ivoire, the world’s leading cocoa producer; this will unlock over $70 million in annual procurement opportunities.
Under the arrangement, DP World and JPMorgan will share risks on trade finance transactions, combining the Dubai-based logistics group’s supply chain expertise with the US bank’s financial capabilities to reduce overall credit risk profiles.
Raj Jit Singh Wallia, board member at DP World Trade Finance, said, “This is a significant step in our mission to bridge the global trade finance gap. By leveraging risk-sharing mechanisms and combining them with logistics in one ecosystem, we reduce the overall credit risk profile and enhance liquidity in emerging markets.”
James Fraser, global head of trade and working capital at JPMorgan, said the bank was committed to supporting global trade through innovative financing solutions. “Our collaboration with DP World Trade Finance allows us to offer innovative financing solutions that provide working capital to businesses whilst mitigating risk through DP World’s expertise,” he said.
The companies plan to expand the partnership beyond West Africa into regions including Central Asia and sub-Saharan Africa, where access to trade finance remains particularly challenging for small and medium-sized enterprises (SMEs). In Africa, DP World is already advancing the development of a deep-sea port at Banana in the Democratic Republic of Congo, with the 450,000 TEU annual facility expected to attract larger vessels from Asia and Europe. Work has also begun on Senegal’s new 1.2 million TEU Ndayane Port, requiring an initial $830 million investment.
