Banco de Fomento Angola gains $30 million IFC trade guarantee

International Finance Corporation (IFC), the private-sector arm of the World Bank Group, is considering a trade finance facility of up to $30 million for Banco de Fomento Angola (BFA), aimed at strengthening the bank’s international trade operations and expanding access to financing for businesses across Angola.

The proposed facility will be structured under IFC’s Global Trade Finance Program (GTFP), which provides guarantees to confirming banks covering payment risk on issuing banks in emerging markets. The program is designed to support trade-related transactions and facilitate cross-border commerce, particularly for corporates and small and medium-sized enterprises.

Supporting trade and financial integration
Under the arrangement, IFC would provide an unfunded guarantee line of up to $30 million for transactions with tenors of up to 360 days. The guarantee structure enables international banks to confirm trade finance instruments issued by BFA, reducing perceived risks and improving access to global trade financing channels for Angolan businesses.

The initiative forms part of IFC’s broader effort to expand trade finance access in emerging markets. By leveraging its global financial institution network and due diligence expertise, the program aims to strengthen correspondent banking relationships and connect local institutions to international trade flows.

BFA’s growing role in Angola’s banking sector
Headquartered in Luanda, Banco de Fomento Angola is the second-largest bank in Angola by assets, loans, and deposits, serving more than 3.4 million customers through a nationwide network of 160 branches, 22 enterprise centers, 11 investment centers, and a private banking division.

The bank traces its origins to Banco Fomento Exterior, which opened a representative office in Angola in 1990 before being acquired by Portugal’s Banco BPI in 1996. BFA was formally incorporated in 2002 and has since grown into one of Angola’s best-performing financial institutions.

In September 2025, the lender completed a public listing that placed 29.75% of its shares on the market, attracting more than 8,000 shareholders. Its largest investors remain telecom operator Unitel with 36.9% and Banco BPI with 33.35%.

Strengthening cross-border trade finance
IFC’s proposed facility is expected to enhance BFA’s trade finance capabilities, enabling the bank to support a broader range of cross-border transactions. The guarantee mechanism also provides additional comfort to confirming banks by mitigating non-commercial risks such as regulatory or political uncertainties.

By improving access to trade finance and strengthening financial linkages with global markets, the initiative aims to deepen Angola’s economic integration and support the expansion of businesses engaged in international trade.