IFC, Standard Chartered launch $300m finance facility

The International Finance Corporation and Standard Chartered Bank have launched a $300m risk-sharing facility to expand access to supply chain finance for businesses across eight African countries, including Nigeria, as firms on the continent continue to grapple with funding shortages. The initiative, announced in a statement by Standard Chartered Bank on Wednesday, is expected to support supply chain and trade finance transactions worth about $1.9bn over the next three years, benefiting more than 500 suppliers, including small and medium-sized enterprises. According to the statement, the programme will be implemented in Côte d’Ivoire, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania and Zambia, targeting sectors such as agriculture, healthcare, and manufacturing. The facility is designed to help suppliers receive payments faster, thereby improving cash flow and enabling businesses to expand production, pay workers, and invest in growth. Under the arrangement, IFC, the private sector investment arm of the World Bank Group, will provide guarantees of up to $150m, with an initial commitment of $100m. The guarantees will support transactions denominated in both United States dollars and selected local currencies. The statement noted that the risk-sharing structure would cover up to $300m in supply chain and trade finance assets originated by Standard Chartered across Africa. It explained that the programme would deploy financing tools, including payables finance, receivables discounting, and pre-shipment finance schemes, to improve access to working capital for smaller businesses. “The facility will help ensure their suppliers get faster payments, freeing up the working capital they need to improve production, pay wages, and hire,” the statement said. The partnership comes amid growing concerns over the financing gap facing businesses in emerging markets, particularly SMEs that often struggle to secure affordable credit despite playing a critical role in economic activity and employment generation. IFC Vice President for Products and Clients, Mohamed Gouled, said supply chain finance remained one of the fastest ways to address the funding challenges confronting businesses in developing economies. “Supply chain finance is among the fastest ways to narrow the growing finance gap that businesses, particularly small and medium enterprises, are facing in emerging economies,” Gouled said. Related News Rand Merchant Bank acts as Lead Issuing House and Bookrunner on Paras Energy Funding SPV Plc’s Landmark ₦15.00 Billion 5-Year Bond Issuance under the ₦25.00 Bil