World Bank Group, Standard Chartered launch $300M Africa trade finance facility

Standard Chartered Plc, a British multinational bank, have launched a $300 million trade finance facility alongside a private sector arm of the World Bank Group to expand supply chain financing for SMEs across Africa, targeting liquidity gaps that continue to constrain business growth.

The risk-sharing facility will support trade finance assets across Nigeria, Kenya, Ghana, South Africa, Egypt, Tanzania, Zambia and Côte d’Ivoire, improving access to working capital for suppliers in agriculture, healthcare and manufacturing.

Bridging Africa’s trade finance gap
Under the structure, IFC will provide guarantees of up to $150 million, enabling Standard Chartered to scale financing through instruments such as payables finance, receivables discounting and pre-shipment loans.

The initiative is expected to unlock up to $1.9 billion in transactions over three years, directly supporting more than 500 SMEs and indirectly benefiting over one million farmers linked to agricultural supply chains. Despite global supply chain finance volumes reaching $2.7 trillion in 2025, adoption in Africa remains limited due to risk perception and constrained banking capacity.

Unlocking SME liquidity across sectors

By accelerating supplier payments, the facility improves cash flow, enabling businesses to scale operations, meet payroll obligations and expand hiring.

The $300 million facility addresses a structural bottleneck in African economies: limited access to affordable working capital for SMEs. Supply chain finance plays a critical role in unlocking liquidity without requiring traditional collateral, making it particularly effective for smaller firms embedded in larger corporate ecosystems.

Risk-sharing model to drive lending

Over the next three years, the partnership is expected to facilitate approximately $1.9 billion in supply chain finance transactions. More than 500 suppliers, many of them small and medium enterprises (SMEs), are projected to benefit directly.

The partnership reduces exposure for lenders, allowing deeper penetration into underserved markets while expanding access to local currency financing.

Strategic push into global trade corridors

Standard Chartered’s cross-border network positions the program to connect African suppliers with markets in Europe, Asia and the Middle East.

The initiative aligns with IFC’s broader strategy to deploy blended finance structures to crowd in private capital and strengthen Africa’s role in global supply chains.