IFC’s new trade finance facility to Banco de Fomento Angola to boost trade and businesses in Angola

A new trade finance guarantee facility provided to Banco de Fomento Angola (BFA) under the Global Trade Finance Program (GTFP), a program of the International Finance Corporation (IFC), a member of the World Bank Group, is set to support Angolan businesses, including small and medium enterprises (SMEs). The facility will enable them to secure essential inputs, deliver to customers on time, and sustain and create jobs across key value chains. 

By de-risking trade transactions and improving the reliability and speed of cross-border payments, the facility aims to strengthen supply chains, promote diversified growth, and deepen Angola’s integration into regional and global markets.

Addressing cross-border payment and trade finance challenges in Angola

In recent years, Angola has struggled with access to foreign exchange and limited correspondent banking, making cross-border payments challenging. This has hindered firms in sourcing inputs and fulfilling orders, especially in the food and agriculture sectors. 

Angola relies on imports for more than half of its food. This shows how important it is to have reliable trade finance to keep the supply chain running smoothly.

Trade finance remains a significant constraint for many African firms. The continent faces an estimated trade finance gap of approximately $100–120 billion annually, with SMEs disproportionately affected despite representing over 90% of businesses and accounting for about 80% of employment in Africa.

Makhtar Diop, IFC Managing Director, said, “Trade finance keeps businesses going. 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.”

A glance at facility features and sector support

Through the Global Trade Finance Program, IFC’s guarantees will back BFA’s issuance of trade instruments such as letters of credit, trade-related promissory notes, bills of exchange, and standby instruments, including bid and performance bonds and advance payment guarantees.

By de-risking cross-border transactions, the facility is designed to help BFA expand its trade portfolio, broaden its network of counterparties, and increase access to trade finance for Angolan firms across sectors, including agribusiness, manufacturing, and essential goods. 

This support enhances Angola’s integration into regional and global value chains while alleviating barriers that often prevent SMEs from scaling and creating jobs.

Luís Roberto Gonçalves, CEO, BFA, said, “We are confident this partnership will have a positive impact not only on communities but also on the Angolan economy. Thanks to IFC, BFA will have more instruments at its disposal to finance small and medium-sized enterprises in productive sectors of the economy, boosting food production and distribution, enhancing food security, and creating jobs.

“This partnership reaffirms BFA’s commitment to scaling solutions that advance the development of Angola’s financial system and reinforce the trust our clients and partners place in us,” he added.

Alignment with World Bank Group strategy and GTFP impact

This partnership aligns with the World Bank Group’s strategy to increase access to finance in Angola’s private sector as a key driver of economic growth. 

As Angola continues efforts to enhance competitiveness and diversify its economy, reliable trade finance plays a crucial role.  It provides farmers with essential inputs like fertiliser and seeds, manufacturers with packaging and raw materials, and service providers with spare parts and equipment. 

These lead to increased productivity, stronger supply chains, and the creation of new and lasting jobs.

Additionally, IFC’s Global Trade Finance Program connects issuing banks in emerging markets with a broad network of international confirming banks, providing risk mitigation that unlocks trade and economic growth. 

Since its inception, the program has supported over 188,000 firms with $120 billion in trade finance. In fiscal year 2025 alone, IFC extended $12 billion in guarantees globally, with over $4 billion allocated to Africa.