IFC and Standard Chartered partner on supply chain finance to support African businesses

The International Finance Corporation (IFC) and Standard Chartered have launched a new risk-sharing facility designed to strengthen supply chains and boost business growth across Africa. 

 This partnership will introduce supply chain finance solutions in eight key markets, including Côte d’Ivoire, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania, and Zambia, supporting companies in critical sectors such as agriculture, healthcare, and manufacturing. 

The facility would ensure suppliers receive faster payments, freeing up working capital to improve production, pay wages, and expand employment.

Mohamed Gouled, IFC’s Vice President, Products & Clients, said, “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.”

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,” he added.

Structure and scope of the risk-sharing facility

The facility will cover up to $300 million in supply chain and trade finance assets originated by Standard Chartered in Africa. It includes a variety of supply chain financing instruments, such as payables financing, receivables discounting, and pre-shipment financing programs. 

These help small businesses get paid faster, lower working capital costs, and invest in growth. 

By enhancing connections between buyers and suppliers, the initiative boosts delivery reliability and creates jobs in the value chain.

IFC will provide guarantees for up to $150 million from its own account, with $100 million committed as the initial tranche under the program. The facility will support transactions denominated in both U.S. dollars and selected local currencies.

Dalu Ajene, Chief Executive and Head of Coverage, Standard Chartered Africa, said: “This $300 million facility with IFC underscores our shared commitment to strengthening Africa’s supply chains and enabling sustainable business growth. As a super-connector bank with deep expertise across key trade corridors linking Africa to Europe, Asia, the Middle East and the Americas, we are uniquely positioned to channel capital and innovation into the real economy.” 

“By expanding access to supply chain finance, we are helping African companies unlock liquidity, manage risk, and invest with confidence. Our collaboration unites Standard Chartered’s cross-border expertise with IFC’s development mandate to empower businesses – from major corporations to smaller local suppliers – to engage more actively in regional and global trade, fostering job creation and promoting inclusive growth.”

Projected impact and reach

Global demand for supply chain finance is expected to reach $2.7 trillion by 2025, which is an increase of 8% from the previous year. 

However, in emerging markets with lower incomes and fragile contexts, growth is not similar. This is because commercial banks are focusing more on developed markets.

This facility aims to mitigate risk in portfolios of short-term trade and supply chain assets and to expand access to finance in capital-scarce markets.

Over the next three years, the partnership is expected to facilitate approximately $1.9 billion in supply chain finance transactions. It aims to provide access to finance for more than 500 suppliers, including small and medium enterprises (SMEs), engaged in both domestic and global value chains. The initiative has the potential to indirectly benefit over 1 million farmers.

This initiative is IFC’s first project under the Global Supply Chain Finance Program and the Africa Trade and Supply Chain Recovery Initiative, supported by the International Development Association (IDA) Private Sector Window Blended Finance Facility.