Access to affordable working capital remains one of the biggest constraints facing African businesses, particularly small and medium-sized enterprises (SMEs). A new $300 million risk-sharing arrangement between the International Finance Corporation and Standard Chartered is aiming to change that by unlocking financing across key trade sectors in eight African countries, including Nigeria.
Announced in a joint statement, the facility is designed to support supply chain finance transactions worth about $1.9 billion over the next three years, with more than 500 suppliers expected to benefit directly. The programme targets businesses in agriculture, healthcare, and manufacturing—sectors often most affected by liquidity shortages.
How the $300m Risk-Sharing Structure Works
At the core of the initiative is a guarantee mechanism in which IFC will provide up to $150 million in risk coverage, with an initial commitment of $100 million. This structure is intended to reduce the perceived risk for lenders and encourage more trade and supply chain financing across emerging markets.
The guarantees will apply to financing in both U.S. dollars and selected local currencies, covering up to $300 million in assets originated by Standard Chartered across participating African markets.
The financing tools under the programme include payables finance, receivables discounting, and pre-shipment funding—mechanisms designed to ensure suppliers are paid faster and have better access to working capital.
As the statement explained, “The facility will help ensure their suppliers get faster payments, freeing up the working capital they need to improve production, pay wages, and hire.”
Expanding Trade Across Eight African Economies
The initiative spans Côte d’Ivoire, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania, and Zambia, reflecting a broad geographic reach across West, East, and Southern Africa.
Beyond direct financing, the programme is expected to strengthen regional and global trade linkages by improving liquidity along supply chains. IFC estimates that the initiative could indirectly benefit more than one million farmers through improved access to credit and stronger commercial connections.
Tackling a Persistent SME Funding Gap
The launch comes amid continued concerns over the financing gap facing SMEs in emerging markets, where many viable businesses struggle to secure affordable credit despite their central role in employment and economic growth.
Mohamed Gouled, Vice President for Products and Clients at IFC, said supply chain finance is one of the most efficient tools for addressing this imbalance.
“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.
Gouled added that partnering with a global bank would help scale up impact across Africa’s value chains:
“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.”
Standard Chartered: Strengthening Trade Corridors and Liquidity
For Standard Chartered, the initiative builds on its presence across major trade corridors linking Africa with Europe, Asia, the Middle East, and the Americas. The bank said the facility will help channel liquidity to companies engaged in both regional and international trade.
“This $300m facility with IFC underscores our shared commitment to strengthening Africa’s supply chains and enabling sustainable business growth,” said Dalu Ajene, Chief Executive and Head of Coverage for Standard Chartered Africa.
He added that improved access to financing will allow firms to manage risk more effectively and expand operations with greater confidence:
“By expanding access to supply chain finance, we are helping African companies unlock liquidity, manage risk, and invest with confidence.”
Global Supply Chain Finance Market Keeps Growing—But Access Remains Uneven
The announcement also comes against the backdrop of a rapidly expanding global supply chain finance market, estimated at $2.7 trillion in 2025. Despite this growth, access remains uneven, with many lenders concentrating activity in developed economies where risk is perceived to be lower.
The new facility aims to address this imbalance by reducing risk exposure in emerging markets and encouraging greater participation from commercial lenders.
According to the statement, this is expected to increase financing flows to underserved businesses and strengthen resilience across African supply chains.
First Step in Broader Development Finance Strategy
The initiative also represents IFC’s first project under its Global Supply Chain Finance Programme and its Africa Trade and Supply Chain Recovery Initiative, which is supported by the International Development Association Private Sector Window Blended Finance Facility.
By combining risk-sharing mechanisms with commercial banking infrastructure, the programme reflects a broader push to use blended finance to close structural gaps in emerging market funding—particularly for SMEs that sit at the center of production, trade, and employment across the continent.