NMB Bank has partnered with health technology firm Dawa Mkononi to provide working capital to eligible pharmacies, pharmaceutical distributors and medicine manufacturers, targeting a financing gap that can disrupt the supply of medicines.
The partnership, formalised through a Memorandum of Understanding (MoU) signed in Kigali, will allow qualifying businesses using Dawa Mkononi’s digital platform to access financing from NMB.
The initiative is expected to help businesses maintain adequate medicine stocks, improve their ability to meet orders and strengthen the movement of pharmaceutical products along the supply chain.
NMB Bank Director of Strategy and Growth, Francis Mittah, said the agreement reflects the role financial institutions and technology companies can play in developing financing solutions tailored to the needs of businesses.
He said digital platforms could make it easier for businesses to access financial services while allowing banks to better respond to the financing needs of specific sectors.
Dawa Mkononi Chief Executive Officer Joseph Paul said access to working capital was critical for maintaining a reliable medicine supply chain.
“Businesses need sufficient liquidity to ensure medicines are available when required,” he said.
The partnership will also provide a basis for NMB and Dawa Mkononi to develop further technology-driven financial solutions for businesses operating across the health-sector value chain.
For pharmacies and other medicine suppliers, improved access to working capital could help reduce interruptions caused by cash-flow constraints, particularly when businesses need to replenish stocks before receiving payment from customers.
The collaboration comes amid growing use of digital platforms to connect businesses with financial services, with the two institutions seeking to combine digital health-sector data and banking services to support pharmaceutical businesses.