Unlocking Trade Finance in Africa: Liquify’s Innovative Approach

In a rapidly evolving financial landscape, Liquify emerges as a beacon of hope for Africa’s underserved SMEs. Founded by two enterprising women, Nadya Yaremenko and Alberta Asafo-Asamoah, this trade finance platform has recently completed a successful $1.5 million seed round, led by Future Africa. The importance of this funding round extends far beyond mere numbers—it signifies an urgent movement toward bridging the substantial $120 billion trade-finance gap that stifles growth for many dynamic small and medium enterprises on the continent.

A New Wave of Empowerment

The investment in Liquify comes not only from Future Africa but also from notable players including Launch Africa Ventures, 54 Collective, Digital Africa, and Equitable Ventures. This diverse group reflects a growing recognition of the potential that African SMEs have to transform local economies. CEO Nadya Yaremenko highlighted the mission of Liquify, stating, “We built Liquify to unlock the $120 billion trade-finance gap holding back Africa’s most dynamic SMEs.” The validation from this funding round further empowers the Liquify team to scale their operations and enhance their AI-driven platform.

Founders with Vision

Yaremenko and Asafo-Asamoah are not new to the world of trade finance. Their extensive backgrounds place them in a unique position to drive Liquify forward. Yaremenko previously managed Citi’s $3 billion structured trade finance portfolio across Asia, while Asafo-Asamoah contributed to deploying $30 million in SME-focused impact investments with TBN and GIZ. Their combined expertise allows Liquify to navigate the complexities of trade finance while formulating innovative solutions tailored for African SMEs.

How Liquify Works

Liquify operates an invoice finance marketplace, which serves as a catalyst for connecting African SMEs with global capital markets. The platform enables exporters to convert unpaid invoices into same-day cash, creating a much-needed liquidity avenue. On the flip side, global investors are presented with a new asset class that previously remained untapped.

Targeted Supply Side

Liquify specifically curates its platform to attract a range of financial entities, including:

• Institutional Investors: Those seeking high returns through short-term, asset-backed investments.
• Trade Finance Funds: Firms looking to enter the African market with established local partners.
• Development Finance Institutions: Organizations committed to promoting SME growth and financial inclusion.
• Corporate Buyers: Businesses aiming to solidify their African supply chains through supplier financing.

Alberta Asafo-Asamoah has noted the “exceptional” response from financiers, with Liquify boasting commitments from various stakeholders. The potential of $16 million in financeable contracts showcases the immense appetite for investing in this often-overlooked market.

A Record of Success

Since its beta launch in late 2024, Liquify has reported that it has facilitated over 150 transactions, amounting to $4 million in trade financed—all with zero defaults. This performance is not just a statistic; it exemplifies Liquify’s efficacy in adopting an AI-driven due diligence process that slashes operational costs significantly, up to nine times when compared to traditional banking approaches.

Furthermore, the platform offers competitive rates to African SME exporters who deal with reputable investment-grade buyers like Nestlé and Mars. This strategy not only fosters trust but also bolsters economic stability for SMEs committed to sustainable practices.

Commitment to Excellence

Liquify’s use of AI extends beyond just financial analytics; it incorporates environmental, social, and governance (ESG) considerations into its credit scoring model. By aligning with these progressive practices, the company effectively champions responsible investing while promoting access to working capital for African exporters. It focuses on SMEs that have established relationships with OECD buyers, thus minimizing risk while simultaneously nurturing businesses that contribute to job creation and economic growth.

Partnering with Liquify

For financial institutions, trade finance funds, and institutional investors interested in exploring partnership opportunities with Liquify, the process is straightforward. Potential partners can reach out via email at inquiries[at]liquify.digital. This open line of communication invites collaboration that could lead to further innovations in trade finance, supporting a vision of a more equitable financial landscape in Africa.

The Future of African SMEs

As Liquify continues to scale its operations across Ghana, Nigeria, Kenya, and Côte d’Ivoire, it stands at the forefront of a burgeoning movement aimed at transforming how trade finance functions within Africa. The investment landscape is changing, and with platforms like Liquify paving the way, African SMEs have a fighting chance at unlocking their full potential amidst a new era of financial inclusivity.