Contour has announced that Pan-African Absa Corporate and Investment Bank (Absa CIB) is intent on joining its digital trade finance network and is in the process of finalising negotiations.

Once the bank once has joined the network, its clients will be able to adopt a fully digital end-to-end letter of credit (L/C) settlement process.

Digital benefits

According to Singapore-based Contour, presenting digital L/C documents on its platform can be completed in under 24 hours compared with five to ten days using manual and paper-based processes.

With a presence in 15 countries from Botswana to Zambia, the Pan-African diversified financial services group once owned by London-based Barclays says it is focused on innovation to drive its sustainable growth.

Contour reckons that digital developments can reduce barriers to accessing trade finance and collectively, fintechs and financial institutions can work together to help trade and trade finance grow in a sustainable manner.

African trade finance

Innovation and technology could be crucial to Africa's trade finance capabilities as multinationals continue to abandon the continent.

Last year Barclays sold its remaining 7.4 per cent stake in South Africa-based Absa, completing its exit from a more than 90-year African presence.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.