Agridex and Tradeflow Bet on Payments Infrastructure to Unlock Trade Finance

Agridex International has announced its partnership with Tradeflow Capital Management to focus on improving how Capital moves into agricultural and commodity trade across Kenya and other African markets with the aim of positioning in payments infrastructure as a central constraint in trade finance instead of a secondary consideration.

This partnership combines Tradeflows structured trade finance model together with Agridex’s Loam digital settlement platform with the goal of accelerating working capital flows to small and medium enterprises whomiften struggle with slow settlement cycles, currency friction and limited access to financing tied to cross border trade.

It’s worth noting that Loam is at the centre of the partnership. This is Agridex’s payment and treasury platform designed for markets where banking risks remain slow or costly.

Agridex says that their platform 3nwbkes near instant settlement at transaction costs below 0.2% which is a significant reduction compared to traditional cross border transfers which can exceed 3% and take several days to complete.

The argument is that when settlement delays are reduced, then capital can ciruclate after through suppy chains, improving liquidity for traders and lowering risk for lenders

Tradeflow Capital Management will use Loam as part of it’s infrastructure for deploying capital into commodity and agricultural value chains. Since inception, the company has facilliated more than $5 billion in SME trade transactions and has built financing models that rely on 4ela.time supply chain visibility and risk management rather gha conventional collateral structures.

This partnership for Agridex signals an attelg to move payments infrastructure closer to the core of trade finance itself. So instead dof treating payments as a final step after financing decisions are made, this model assumes that settlement certainty and transparency influence how much capital can be deployed in the first place.

This collaboration is a trend seen across African financial services where Fintech operators and institutional investors agree to work together to address persistent gaps oftenlu visisbky between caotai availability and capital accessibility.

Loam has been supported by Imara Group who is an investor in African financial services and backer of infrastructure development across Africa.

This collaboration will first focusing commodity trxaes and structured financing deployments across the continent’s priority markets.

There has been a shift with a demand for more predictble and faster criss border payments and industry participants are increasingly seeing infrastructure partnerships like this as necessary step to make trade finance scalable for smaller and medium businesses operating across fragmented regional markets.

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