The International Finance Corporation and Standard Chartered have introduced a $300 million risk-sharing facility targeted at improving supply chain financing across Africa. The initiative focuses on expanding access to working capital for micro, small, and medium enterprises while supporting trade activities in key sectors.
The programme will be deployed across eight African countries, including Nigeria, Kenya, Ghana, South Africa, Egypt, Tanzania, Zambia, and Côte d’Ivoire. It targets industries such as agriculture, healthcare, and manufacturing, which play a central role in economic development and job creation.
According to details released by the institutions, the facility is structured to ease liquidity challenges faced by suppliers, particularly MSMEs that often struggle with delayed payments and limited access to affordable financing. It will support up to $300 million in trade and supply chain finance assets arranged by Standard Chartered.
Financial instruments under the programme include payables finance, receivables discounting, and pre-shipment funding. These tools are expected to enable faster cash flow cycles and improve operational efficiency across value chains.
To reduce risk and encourage lending in underserved markets, IFC will provide guarantees of up to $150 million, with an initial commitment of $100 million. The facility will operate in both US dollars and selected local currencies, offering flexibility for businesses across different markets.
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The initiative comes at a time when global demand for supply chain finance continues to grow, yet access remains uneven, particularly in emerging economies. African businesses have historically faced funding gaps as financial institutions prioritize more developed markets.
Over a projected three-year period, the programme is expected to facilitate about $1.9 billion in transactions. It is also set to support more than 500 suppliers directly, while indirectly benefiting over one million farmers connected to these supply chains.
Stakeholders note that beyond immediate financial support, the facility is positioned to improve business stability, strengthen supplier relationships, and enhance participation in regional and global trade.
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Information provided by Edfrica is for awareness purposes only and does not constitute a guarantee or endorsement.
