IFC backs trade finance facility to boost Angola’s SMEs and supply chains

International Finance Corporation (IFC), a member of the World Bank Group, has launched a trade finance guarantee facility for Banco de Fomento Angola (BFA) to support Angolan businesses, particularly small and medium enterprises (SMEs), in accessing critical imports and strengthening cross-border trade.

The initiative, delivered under IFC’s Global Trade Finance Program (GTFP), is designed to ease financing constraints, improve payment reliability, and sustain job creation across key sectors.

Unlocking trade and easing FX constraints
Angolan firms have faced persistent challenges in accessing foreign exchange and maintaining correspondent banking relationships, complicating cross-border payments and disrupting supply chains. These constraints are especially acute in food and agriculture, where the country imports more than half of its consumption needs.

Through the facility, IFC will provide guarantees to back BFA’s issuance of trade instruments, including letters of credit, promissory notes, bills of exchange, and standby guarantees. By de-risking transactions, the program enables businesses to secure essential inputs, meet delivery timelines, and expand operations.

“Trade finance keeps businesses going,” said Makhtar Diop, IFC Managing Director. “Working with BFA, we’re helping Angolan firms access vital imports, trade more smoothly across borders, and create jobs, strengthening supply chains and the wider economy.”

Supporting SMEs and economic diversification
Trade finance remains a major bottleneck across Africa, with an estimated funding gap of $100 billion to $120 billion annually. SMEs, which account for over 90% of businesses and around 80% of employment on the continent, are the most affected.

The IFC-backed facility is expected to help BFA expand its trade portfolio, deepen relationships with international banks, and increase financing to sectors such as agribusiness, manufacturing, and essential goods. This will enhance Angola’s integration into regional and global value chains while supporting broader economic diversification efforts.

Driving growth through financial inclusion
BFA CEO Luís Roberto Gonçalves said the partnership will expand the bank’s capacity to finance productive sectors, boost food security, and create jobs. “This partnership reaffirms our commitment to advancing Angola’s financial system and supporting businesses that drive economic growth,” he said.

By improving access to trade finance, the initiative aligns with broader efforts to strengthen Angola’s private sector, ensuring businesses can access inputs, from seeds and fertilizer to machinery and spare parts, needed to drive productivity, build resilient supply chains, and sustain long-term economic growth.