The International Finance Corporation and Standard Chartered Bank have launched a $300m risk-sharing facility to expand access to supply chain finance for businesses across eight African countries, including Nigeria, as firms on the continent continue to grapple with funding shortages.
The initiative, announced in a statement by Standard Chartered Bank on Wednesday, is expected to support supply chain and trade finance transactions worth about $1.9bn over the next three years, benefiting more than 500 suppliers, including small and medium-sized enterprises.
According to the statement, the programme will be implemented in Côte d’Ivoire, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania and Zambia, targeting sectors such as agriculture, healthcare, and manufacturing. The facility is designed to help suppliers receive payments faster, thereby improving cash flow and enabling businesses to expand production, pay workers, and invest in growth.
Under the arrangement, IFC, the private sector investment arm of the World Bank Group, will provide guarantees of up to $150m, with an initial commitment of $100m. The guarantees will support transactions denominated in both United States dollars and selected local currencies.
The statement noted that the risk-sharing structure would cover up to $300m in supply chain and trade finance assets originated by Standard Chartered across Africa. It explained that the programme would deploy financing tools, including payables finance, receivables discounting, and pre-shipment finance schemes, to improve access to working capital for smaller businesses.
“The facility will help ensure their suppliers get faster payments, freeing up the working capital they need to improve production, pay wages, and hire,” the statement said. The partnership comes amid growing concerns over the financing gap facing businesses in emerging markets, particularly SMEs that often struggle to secure affordable credit despite playing a critical role in economic activity and employment generation.
IFC Vice President for Products and Clients, Mohamed Gouled, said supply chain finance remained one of the fastest ways to address the funding challenges confronting 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,” Gouled said.
Related News Africa can raise $469bn without tax hikes – AfDB Group seeks decentralisation of solid minerals sector The roads, rail and economic corridors reshaping Nigeria under Tinubu He added, “By partnering with Standard Chartered to support companies at the centre of strategic value chains, we can unlock much-needed working capital at scale for businesses across Africa, including smaller firms and farmers, making supply chains more competitive and boosting job creation.” The statement projected that the initiative could indirectly benefit more than one million farmers through stronger value-chain linkages and improved access to finance.
Chief Executive and Head of Coverage, Standard Chartered Africa, Dalu Ajene, said the partnership would strengthen supply chains and encourage sustainable business expansion across the continent. “This $300m facility with IFC underscores our shared commitment to strengthening Africa’s supply chains and enabling sustainable business growth,” Ajene said.
He noted that the bank’s presence across major trade corridors linking Africa with Europe, Asia, the Middle East and the Americas would help channel financing to businesses involved in regional and global trade. “By expanding access to supply chain finance, we are helping African companies unlock liquidity, manage risk, and invest with confidence,” he said.