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.
