Beyond Borders: Managing Risk in the World’s Fastest-Growing Supply Chains

August 8th, 2025

At this years ITFA/FCI Conference – Transforming Trade Finance in London – a detailed panel discussion moderated by FCI’s Mrs. Betül Kurtulus, Director of Strategic Marketing and Business Development, explored the importance of securing supply chains in a shifting global trade landscape.

This directly aligns with Zvilo’s core mission: enabling secure, efficient cross-border trade for MSMEs operating in or expanding to emerging markets.

As globalisation accelerates, emerging economies are offering unprecedented opportunities – from cost-effective sourcing to diversified customer bases. But these opportunities are matched by equally significant risks, particularly around fraud and non-payment.

For businesses looking to expand in high-growth regions, building resilient supply chains is essential for long-term sustainability, investor confidence, and operational success.

The Dual Nature of Emerging Markets

Emerging economies across Asia, Africa, Latin America and parts of Eastern Europe are rich in potential, offering competitive labour costs, expanding infrastructure and improving digital connectivity. However, these advantages are frequently offset by a lack of regulatory enforcement, limited legal protections and inconsistent financial systems. These structural weaknesses leave supply chains extremely vulnerable to fraud, to payment defaults and loss of investment.

Identifying and avoiding key risks to supply chain management is critical. Some of the key risks to consider include:

1. Supplier Fraud: One of the most prevalent threats in emerging markets is the presence of fraudulent or misrepresented suppliers. These may range from non-existent entities posing as legitimate businesses to real vendors delivering counterfeit, defective or incomplete goods.

   
   

2. Non-Payment and Credit Risk: Exporters to emerging markets often extend credit to buyers, exposing themselves to delayed payments or total defaults. In regions where contract enforcement is weak, recouping losses can be nearly impossible without significant time and expense.

   
   

3. Forgery and Document Manipulation: Fake bills of lading, falsified certificates of origin, and inflated invoices can mislead buyers and financiers, often causing disruptions or financial losses.

   
   

4. Cargo Theft and Pilferage: Weak security infrastructure during transportation and storage heightens the risk of stolen or tampered goods, particularly in cross-border transactions.

Practical strategies for mitigation

To secure supply chains in emerging markets, businesses must take a comprehensive approach that includes financial, legal, and technological safeguards. Zvilo offers practical strategies to help mitigate this growing risk:

1. Conduct thorough due diligence

Verify client and supplier credentials through official records, physical site checks, trade references, and third-party verification platforms.

2. Utilise trade finance tools

Mitigate non-payment risks through:

• Letters of Credit (LCs): Ensures payment only upon fulfilment of contract terms.

• Bank Guarantees: Provides recourse if a party defaults on its obligations.

• Trade Credit Insurance: Protects against buyer insolvency or political risks that prevent payment.

  
  

3. Adopt secure payment terms

Avoid extending open credit without a proven track record. Where possible, require:

• Partial advance payments

• Milestone-based invoicing

• Cash against documents (CAD) arrangements

  
  

4. Engage local legal expertise

Work with regional counsel to ensure contracts are enforceable and disputes can be resolved efficiently.

5. Leverage supply chain technology

Digital platforms enable real-time visibility over shipments, inventory, and supplier activity, helping identify issues early.

The Role of Multilateral and Government Support

Organisations like the WTO and Export Credit Agencies (ECAs) offer advisory services, payment guarantees, and dispute resolution tools. Programs such as the Trade Facilitation Agreement (TFA) aim to modernise and streamline cross-border trade procedures – a welcome development for businesses in emerging markets.

Zvilo: Enabling Secure Growth in Emerging Markets

Securing supply chains in emerging markets requires balancing opportunity with vigilance. While the risks of fraud and non-payment are real, they can be effectively managed with a strategic mix of financial tools, technology adoption, legal safeguards and local market intelligence.

At Zvilo, our expert teams address supply chain security issues to help businesses protect their investments, and build long-term partnerships in some of the world’s fastest-growing regions. With our regional expertise and secure credit checking and supply chain monitoring platforms, we help mitigate the risk that comes with investing in potential, aiming to boost growth in emerging markets through tailored business support.