Citi Perspectives Spring 2020

Citi Perspectives  | 53 Citi is currently working with Zambia’s regulator to assist with the introduction of its new National Financial Switch, which will provide more comprehensive payment interoperability between banks and mobile wallets. As part of the launch of this new payment capability, all existing mobile and digital wallets are required to be integrated. This will open up new opportunities for Zambians to access finance, and spur economic growth through entrepreneurship — especially in the agricultural sector. It will also improve the efficiency of existing businesses by lowering costs and offering interoperability across Zambia’s many mobile and digital payment methods, increasing B2B, B2C and P2P flows. Re-imagining supplier finance to drive sustainability Citi is developing new solutions, as well as re-aligning existing solutions, to support clients and help them meet their SDG targets or broader ESG goals. Sustainable supply chain management has become an increasing area of focus for large multinationals as they address global pressures arising from new environmental regulations, rising energy costs, workplace standards, and consumer demand for sustainably- sourced goods and services. As a result, many corporates are embedding ESG standards into contractual relationships with suppliers to progress on strategic sustainability objectives as well as reduce environmental and social risks for both buyers and their suppliers. Sustainable and inclusive supply chain finance offers global buyers a unique way to incentivize suppliers into adopting sustainable behaviors by providing access to credit at favorable interest rates. Liquidity in many African countries is often difficult to access or is prohibitively expensive, and relatively low-cost finance from supplier finance programs can be a lifeline to growing businesses; Citi can tier suppliers’ interest costs based on criteria agreed with the buyer. As well as helping corporates to achieve their SDG goals, sustainable supplier finance increases security of supply and strengthens relationships with suppliers. In one recent example, Citi partnered with Kenyan mobile network operator Safaricom to extend sustainable supplier finance to empower women through Safaricom’s Women in Business Platform. Safaricom’s sustainable supplier finance program helps the company to meet its commitment to SDG 5 on gender equality, which among other goals, aims to give women equal rights to economic resources. In this instance, Citi not only onboarded the suppliers using its digital platform but, at the request of Safaricom, provided a series of seminars to teach female entrepreneurs about financial services. 3 Source: https://oneacrefund.org/impact/