IFC, Standard Chartered launch $300 million Africa trade finance facility

The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, and Standard Chartered Bank have launched a $300 million risk-sharing facility aimed at widening access to supply chain finance for businesses across eight African countries, including Nigeria. 

The initiative, announced by Standard Chartered on Wednesday, is designed to ease persistent funding pressures facing companies, particularly small and medium-sized enterprises, that often struggle to secure affordable short-term credit. Over the next three years, the programme is expected to support about $1.9 billion in trade and supply chain finance transactions and reach more than 500 suppliers. 

The participating countries include Côte d’Ivoire, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania and Zambia, with funding directed toward sectors such as agriculture, healthcare and manufacturing.

Faster payments, stronger cash flow 

At the core of the facility is a simple objective: shorten payment cycles for suppliers so they can access cash more quickly. For many smaller firms, delayed payments remain a recurring strain on operations, limiting their ability to restock, meet payroll or expand production. 

Under the arrangement, IFC will provide guarantees of up to $150 million, including an initial $100 million commitment. The guarantees will cover transactions denominated in U.S. dollars and selected local currencies, reducing risk for lenders and encouraging more financing activity. 

The structure will support up to $300 million in supply chain and trade finance assets originated by Standard Chartered across the region. It will also deploy tools such as payables finance, receivables discounting and pre-shipment financing to improve access to working capital. 

“The facility will help ensure suppliers get faster payments, freeing up working capital they need to improve production, pay wages and hire,” the statement said.

Addressing a persistent financing gap 

The programme comes against the backdrop of a widening credit gap in emerging markets, where small and mid-sized firms remain underserved despite their role in employment and economic activity. 

IFC Vice President for Products and Clients Mohamed Gouled said supply chain finance remains one of the most practical ways to ease liquidity constraints for 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,” he said. 

He added that the partnership with Standard Chartered would help channel liquidity into key value chains across Africa, including smaller firms and farmers, while improving efficiency in supply networks. 

The IFC estimates that the initiative could indirectly support more than one million farmers through stronger linkages within agricultural supply chains.

Trade flows and market context 

Global supply chain finance has expanded in recent years, reaching an estimated $2.7 trillion in 2025, up about 8% from the previous year. However, access remains uneven, with lenders often concentrating exposure in developed markets where risks are perceived to be lower. 

The new facility aims to shift that balance by reducing risk on short-term trade finance portfolios, encouraging greater lending activity in markets where capital remains constrained. 

It also marks IFC’s first project under its Global Supply Chain Finance Programme and the Africa Trade and Supply Chain Recovery Initiative, backed by blended finance support from the International Development Association Private Sector Window.

Banking partnership and outlook 

Dalu Ajene, Chief Executive and Head of Coverage for Standard Chartered Bank Africa, said the partnership is intended to strengthen regional supply chains and support more stable business expansion. 

“This $300 million facility with IFC underscores our shared commitment to strengthening Africa’s supply chains and enabling sustainable business growth,” he said. 

He added that the bank’s presence across major trade corridors linking Africa with Europe, Asia, the Middle East and the Americas positions it to channel financing where cross-border trade is most active. 

“By expanding access to supply chain finance, we are helping African companies unlock liquidity, manage risk and invest with greater confidence,” he said. 

Ajene also noted that the programme would support both large corporates and smaller suppliers in participating more effectively in international trade. 

Standard Chartered and IFC

Standard Chartered operates in 54 markets across Asia, Africa and the Middle East, focusing on trade finance, wealth management and cross-border banking. The lender reported operating income of $5.9 billion in the first quarter of 2026, up 9% from a year earlier. 

IFC, a member of the World Bank Group, works with private companies in more than 100 countries. In fiscal 2025, it committed $71.7 billion globally to private sector development, including trade finance and SME support programmes.