Bridging the Gap in Resource Trading and SME Procurement
Access to funding for commodity trading and SME procurement contracts remains a major gap in South Africa's financial landscape. Traditional banks often lack the risk appetite, systems, and agility to facilitate these high-volume, short-cycle transactions — leaving both established traders and SMEs underserved.
The commodities sector — particularly coal, chrome, and energy — is one of the country's most lucrative and cash-generative industries. Transactions are typically underpinned by solid offtake agreements with blue-chip companies such as Anglo American, Sasol, and Eskom, significantly reducing risk.
However, banks are reluctant to finance these daily trades, creating a significant opportunity for alternative funders. The Rihlat Muzdahira Commodity Finance Platform addresses this gap by partnering with carefully selected, proven trading companies. These are businesses with a strong operational track record, established executive teams, and robust trading protocols — many of whom the Rihlat GP executives have already funded successfully in the past.
By doing so, the platform enables investors to participate in low-risk, high-volume commodity trades, while delivering consistent and attractive returns.
South Africa's corporates and government institutions allocate up to 30% of their annual procurement budgets — amounting to billions of rands — to SMEs, in line with transformation and empowerment objectives. While these SMEs often succeed in winning tenders and receiving purchase orders, most are unable to perform due to a lack of funding.
The Rihlat Muzdahira Trade Finance Platform provides the working capital required for SMEs to fulfil these purchase orders. Through agreements with large corporates and mining houses, the platform ensures that payments flow directly from the corporate client to the funding vehicle, thereby reducing counterparty risk and ensuring transparent repayment structures.
This approach enables SMEs to scale operations and build credibility, while investors benefit from short-term, asset-backed opportunities with strong returns.
This dual platform — Commodity Finance for established trading houses and Trade Finance for SMEs — creates a balanced investment product that is both impactful and highly profitable. Investors not only earn competitive, Shariah-compliant returns but also contribute to strengthening South Africa's resource supply chain and empowering SMEs to deliver on critical contracts.
Interested in learning more about our Commodity & Trade Finance platform? Contact us today.
info@rihlat.co.za
investments@rihlat.co.za
021 201 7270
Mon - Fri: 8:00 AM - 5:00 PM
First Floor, Fussel House
48 Athol Oaklands Street
Melrose Arch, 2076
South Africa