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Mansa, a pioneering fintech providing finance to emerging markets, announced on July 29 that it would provide its first pool on Base, a low-cost Ethereum-equivalent L2 blockchain. This is a significant milestone for Mansa, whose mission it is to democratise access to financing and liquidity to emerging markets in Africa; the launch is expected to boost cross-border payments and increase take-up of trade finance instruments in the region, especially for SMEs.
Base is an open, permissionless Ethereum L2 built on the open-source OP Stack. The security, stability, and scalability it offers are essential for powering on-chain applications, making it an ideal platform for Mansa. Mansa’s goal is revolutionising cross-border trade and export receivables finance, making Base’s accessibility and seamless integration capabilities for fiat onramps make it the perfect partner to achieve this.
Mansa’s pools offer liquidity providers appealing yields and token incentives, while borrowers enjoy reduced interest rates and flexible financing solutions. Initially, only whitelisted users will be able to lend or borrow on the platform, with a public launch to be announced soon.
The launch on Base is well-timed, meeting the urgent need for efficient credit financing in emerging African markets. Utilising the liquidity offered by Mansa, businesses in the export and cross-border payments sectors can conduct trades without the burden of high interest rates or the complications typical of the traditional credit market. This is especially important for businesses that face high interest rates and manual processes that have long constrained growth.
Mansa’s CEO and Co-Founder, Mouloukou Sanoh, says he expects the pools to “help African businesses access cheaper liquidity whilst enabling global investors to earn double-digit risk-adjusted yields with short-lock ups.”
Mansa aims to bring the trillion-dollar markets of cross-border settlements and exports on-chain by sourcing decentralised finance liquidity from institutional and accredited investors. This approach would allow venture-backed businesses to use a wide range of assets as collateral, significantly expanding the pool of potential borrowers and democratising access to trade finance while promoting the growth of SMEs in emerging markets.
By leveraging blockchain technology on Base, Mansa offers transparent and accessible means of trading and managing assets, connecting businesses with global investors. This is particularly beneficial for African markets, where traditional barriers such as lack of financial services and reduced access to cross-border payments facilities have impacted growth in the past.
Mansa’s launch on Base is set to significantly enhance the trade finance landscape in emerging markets. Its offer of robust, scalable, and secure solutions for cross-border payments and export receivables financing will increase uptake to trade finance and payments instruments to businesses that may not have been able to access them before, promoting cross-border trade and increasing growth.
As institutional adoption of the decentralised finance model championed by Mansa gains momentum, the company’s innovative strategies and strategic partnerships will play a significant role in increasing trade in emerging African markets and inspiring other businesses to take up its mission to democratise access to trade finance.
