Summary:
- Mansa Launches Blockchain-Based Receivables Financing Pool for African Exporters
- Investors Benefit from ETF-like Structure with High Yields and 37-Day Lockup
- Blockchain Platform Simplifies Forex Payments, Expands Investor Access Early Next Year
Africa-focused trade finance fintech Mansa has introduced the first of three blockchain-based liquidity pools dedicated to receivables financing in underserved markets, hosted on the Base platform.
This pool enables established commodity exporters in emerging markets to borrow against their invoices, receiving 80% of the payment upfront, with the remaining balance paid upon invoice settlement.
Mansa conducts internal risk assessments and credit checks, requiring participating companies to have a minimum of US$3 million in annual revenue, three years of audited financial statements, and at least 12 months of revenue-positive operations.
For lenders, Mansa’s product operates more like an exchange-traded fund (ETF) than a traditional loan. Investors contribute to a managed pool of funds, which finances receivables and provides yields based on 37-day lockup periods, during which funds are not withdrawable.
Offering monthly interest rates of 2-3%, Mansa generates an annual percentage yield (APY) of 24-36% and provides investors a flat 20% APY return, comparable to top-performing ETFs over the past five years, according to VettaFi data.
Currently, Mansa has over US$200,000 committed in liquidity and a pipeline including major African exporters of tobacco, vegetables, and nuts, with a monthly liquidity demand of US$30 million across nine companies.
Although multi-funder supply chain finance platforms are not new, Mansa aims to leverage blockchain’s advantages, offering funding in USDT, a stablecoin pegged to the US dollar, which simplifies forex payments and allows exporters to handle currency exchange at their convenience. Mansa anticipates that much of the currency will remain dollar-denominated to finance further exports.
Another benefit of operating on the blockchain, according to Mansa, is the streamlined onboarding process for investors. Currently open only to institutional investors, the company plans to expand access to the general public early next year.
Mansa believes that expanding into the retail trading market will significantly increase liquidity, utilizing protocols already established in other blockchain-based platforms, such as cryptocurrency wallets.
This innovative approach has attracted investment from non-traditional trade finance channels. One of its primary liquidity providers is a blockchain startup investor from the US, and it has also secured investment from an unnamed wealth fund in the UAE, reducing its reliance on technology investors.
Mansa’s CEO and co-founder Mouloukou Sanoh, who has a background in investment banking and co-founded the successful tech startup Cassava, leads the company alongside CTO and co-founder Chris Yuen, previously the technology lead at GoGo Van, a publicly traded unicorn. On the trade finance side, head of lending Sharon Olende brings experience from her previous roles in trade at Barclays and Citibank.
Main Author: Isaac Hanson
Source: GT Review
