The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, and Standard Chartered have announced a new risk-sharing facility aimed at strengthening supply chains and supporting business growth across Africa. The facility will cover up to $300 million in supply chain and trade finance assets originated by Standard Chartered in the region, ensuring faster payments to suppliers. The IFC offers investment, advisory, and asset management services to encourage private sector development in developing countries. Standard Chartered is a British multinational banking and financial services company with a significant presence across various emerging markets.
Under the arrangement, IFC will provide guarantees of up to $150 million to support transactions in U.S. dollars and selected local currencies. The programme is set to roll out supply chain finance solutions in eight key African markets: Côte d’Ivoire, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania, and Zambia. These initiatives will target vital sectors including agriculture, healthcare, and manufacturing, which are crucial for regional economic development and resilience. This strategic focus aims to enhance the operational efficiency and financial stability of businesses within these critical supply chains.
Over the next three years, this partnership is expected to enable approximately $1.9 billion in supply chain finance transactions, ultimately supporting more than 500 suppliers. This significant investment underscores a commitment to fostering economic stability and growth in a vital continent. The initiative follows a similar move in December 2024, when IFC and HSBC launched a $1 billion risk-sharing trade finance programme covering emerging markets across Africa, Asia, Latin America, and the Middle East, highlighting IFC’s broader strategy to enhance trade finance accessibility globally.
