01
Between regulated entities
Deal Matching
A matching engine pairs funding needs — receivables, commodity shipments, cross-currency payables — with licensed FI capacity, screened for eligibility, KYC/AML and prudential fit.
The Platform
Five pillars. Shared rails. One capital markets stack for Africa.
Structured is built as five interlocking modules on a single KYC layer, settlement ledger, and risk-data layer.
02
Multi-FI co-funding
Risk Tranching
Senior, mezzanine and junior tranches let several FIs co-fund the same pool at a price and capital treatment that matches each risk appetite. Losses absorbed bottom-up, cash distributed top-down.
| Tranche | Risk position | Typical holder | Return profile |
|---|---|---|---|
| Senior | First-priority claim on settlement cash flows; last to absorb losses. | Commercial banks · DFIs · treasury desks | Lowest yield · capital preservation |
| Mezzanine | Subordinated to Senior; absorbs losses after Senior is fully protected. | Regional banks · insurers · credit funds | Moderate yield · buffer-risk pricing |
| Junior / First-loss | First to absorb default or FX/settlement losses. | Sponsor · specialised risk funds · guarantee facilities | Highest yield · first-loss premium |
03
Commodity · Currency · Debt
SPV Settlement
Bankruptcy-remote SPVs isolate pooled exposure from Next Harvest and any single FI. Ring-fenced accounts, defined waterfalls, independent trustees, and cross-jurisdiction legal wrappers.
- CommoditiesPooled offtake and warehouse-receipt-backed positions across intra-African corridors.
- CurrenciesNetting and settlement of African currency pairs — less reliance on hard-currency routing.
- DebtPooled receivables or loan participations, tranched and — once seasoned — placed as tradable notes.
04
Domestic working capital
Invoice & Debt Factoring
Purchase — not lend against — receivables. Recourse or non-recourse, with buyer credit assessment, concentration limits, and pooling into the SPV layer once volumes justify it.
05
Cross-border AfCFTA-era trade
Export Factoring
Two-factor model with correspondent partners in the buyer's country, settling through the same cross-currency rails. A natural feeder for future export-receivable SPV issuances.
End-to-end transaction flow
From origination to servicer report — on one ledger.
01
Origination
Seller or FI submits deal.
02
Matching
Engine pairs on eligibility & appetite.
03
Structuring
Pool into SPV; tranche exposure.
04
Funding
Proceeds disbursed net of discount.
05
Settlement
Waterfall distributes buyer payments.
06
Reporting
Pool performance to all participants.
Revenue model
Seven streams. Aligned incentives.
Fees are indicative and calibrated per corridor.
| Stream | Basis | Paid by |
|---|---|---|
| Deal-matching fee | Basis points on matched notional | Originating / receiving FI |
| Tranching & structuring | Flat fee + bps for SPV structuring and placement | SPV arranger fee pool |
| SPV administration | Annual servicing fee per active SPV | SPV cash flow (senior expense) |
| Factoring discount margin | Discount rate spread on purchased invoices | Exporter / seller |
| Export factoring commission | % of invoice value, non-recourse premium | Exporter |
| FX & settlement spread | Bid/offer on cross-currency legs | Both counterparties |
| Data & risk analytics | Subscription for counterparty risk scoring | Participating FIs |
Indicative roadmap
A 24-month path to multi-corridor scale.
0–6 mo
Regulatory scoping, SPV domiciliation study, 2–3 pilot FIs.
Dependency
Legal opinions per jurisdiction · sandbox approval
6–12 mo
Launch invoice factoring + deal-matching on one commodity corridor.
Dependency
Escrow rails · credit scoring engine
12–18 mo
First SPV issuance with tranched notes; add export factoring.
Dependency
Rating framework · mezzanine/senior investors
18–24 mo
Multi-corridor scaling; 2nd and 3rd SPVs; secondary trading.
Dependency
Regional passporting · liquidity facility
Governance & regulatory
At the intersection of banking, securities and payments regulation.
Before launch, each workstream below requires qualified legal and regulatory counsel in every relevant country — not settled conclusions.
Licensing
Deal-matching, factoring and SPV note issuance may require capital-markets, banking or factoring licenses.
SPV domicile
Legal enforceability of SPV asset ownership and noteholder priority across obligor jurisdictions.
AML / KYC
Screening for originating and funding counterparties and material underlying obligors.
FX & capital controls
Rules in each country touched by cross-currency settlement flows.
Prudential treatment
How regulators risk-weight FI tranche exposures — affects demand and pricing.
Data protection
Credit information sharing rules governing the risk-analytics layer.