Catalys Supply Chain Finance (Catalys), a supply chain finance (SCF) solutions provider headquartered in Johannesburg, South Africa, has formed a strategic alliance with the UK-based technology specialist of working capital solutions, Demica. Leveraging Demica’s proprietary web-based processing platform Citadel and its technology expertise, Catalys will be able to enhance the efficiency of access to working capital for small and medium-sized African businesses through its SCF solutions.
Access to funding and consistent cash flows is the single biggest impediment to growth of the small and medium-sized enterprises (SMEs) in Sub-Saharan Africa. As buyers have the tendency to stretch payment periods, and local SMEs suppliers often have difficulty securing bank finance through overdraft facilities or loans, supplier companies are finding it extremely challenging to raise necessary working capital. This either forces them to scale down or even shut down operations completely, undermining all efforts towards local economic development and enterprise empowerment. Catalys, in partnership with wholesale funders and its technology partner Demica, is now seeking to bridge this funding gap through its SCF offerings, underpinned by Citadel’s proven capabilities to operate in real-time across multiple jurisdictions, time zones, currencies, languages and operating systems.
Ndaba Moyo, CEO of Catalys, comments, “Harnessing Demica’s technical know-how and its automated reporting solution, Citadel SCF, we can provide a highly secured, fast and easy access to working capital for SME suppliers, while giving buyers the flexibility to extend payment terms without placing its suppliers under undue financial pressure. Operating within applicable policies and procedures, Demica’s technology streamlines a 30-day payment process down to 48 hours, giving SMEs the much needed capital to sustain operations and continued delivery of goods and services. We are pleased to announce this partnership with Demica and are very excited about the prospects of bringing this win-win SCF proposition to both the SME suppliers and their buyers.”
Phillip Kerle, CEO of Demica, adds, “We are delighted to join forces with Catalys to help deliver an all-round SCF solution to the African corporate constituency. This alliance marks an important step in Catalys’ strategic plan to deepening market penetration of SCF while creating a secure, accelerated but sustainable revenue stream and a highly profitable business for its wholesale funders, investors and promoters. The significant market potential for SCF in Sub-Saharan Africa brings with it abundant market opportunities. We are proud to be chosen as Catalys’ trusted partner in its continuous development of innovative SCF programmes and appreciate this unique opportunity for Demica to spearhead the progress of this financing technique on the African continent.”