Investment bank or retail bank – RMB mines space in between
RMB Namibia received the award for Best Trade Finance Provider in Namibia, from Global Finance magazine.
The investment bank’s Trade and Working Capital division, which leans to the retail side of banking, was recognised for the transaction volumes it created, its global reach through its behemoth parent, South Africa’s FirstRand Group, furthermore, its customer service, decent pricing and the application of new technologies.
Jason Shikalepo, RMB’s Trade and Working Capital dealmaker, has been with the bank for less than a year but has been instrumental in promoting their solutions-driven ethos. “RMB Namibia is at the forefront of providing innovative trade and working capital solutions, which are not only critical for importers and exporters to reduce commercial and settlement risk, but correctly used also improves the business cash flow cycle and enhances profits. While the generic use of traditional trade instruments goes back a long way, the increasingly unique commercial transactions and contracts demand that trade solutions are tailored to meet the requirements of trading partners,” he said highlighting the role of the dealmaker in modern, complex, multi-national transactions.
In his earlier career, Shikalepo was instrumental in negotiating a number of supply and off-take agreements for both local and international companies.
“Trade finance allows buyers and sellers to optimise the cash flow value of transactions by using trade instruments, like a bank guarantee in the acquisition of goods and services. The subsequent reduced transaction risk enables the parties to agree better payment terms,” he explained.
“Trade finance benefits the supplier who can raise cheaper debt against correctly structured bank payment guarantees, while the buyer draws comfort that payment will only be made after pre-agreed milestones have been reached,’’ he said.
“We use our global relationships and platforms, combined with our local insights across industries and sectors to provide solutions for businesses in all sectors. We recommend that importers and exporters consult with their bank prior to agreeing on payment terms to discuss whether solutions exist to boost working capital for both parties,” said Shikalepo.