IFC and Standard Chartered Launch $300M Facility to Unlock Supply Chain Finance in Africa

The programme enables suppliers to receive payments earlier, reducing cashflow constraints and allowing businesses to reinvest in operations, pay workers, and expand production capacity.

In a major push to address Africa's persistent financing gaps and strengthen regional trade networks, the World Bank Group's private sector arm, the International Finance Corporation (IFC), has partnered with Standard Chartered to launch a $300 million risk-sharing facility aimed at transforming supply chain finance across the continent.

The initiative will roll out across eight key African markets—Côte d'Ivoire, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania, and Zambia—targeting sectors critical to economic resilience, including agriculture, healthcare, and manufacturing.

Unlocking Liquidity for Businesses and Suppliers

At the heart of the facility is a strategy to improve working capital access, particularly for small and medium enterprises (SMEs), which form the backbone of African economies but often struggle to secure timely payments and affordable financing.

By introducing structured supply chain finance solutions—such as:

• Payables finance

• Receivables discounting

• Pre-shipment financing

The programme enables suppliers to receive payments earlier, reducing cashflow constraints and allowing businesses to reinvest in operations, pay workers, and expand production capacity.

The facility will cover up to $300 million in trade and supply chain finance assets originated by Standard Chartered, with IFC providing guarantees of up to $150 million, including an initial $100 million tranche.

Scaling Impact Across Value Chains

Over the next three years, the partnership is expected to mobilise approximately $1.9 billion in supply chain finance transactions, significantly amplifying its impact beyond the initial guarantee structure.

Key projected outcomes include:

• Support for more than 500 suppliers, many of them SMEs

• Indirect benefits for over 1 million farmers, particularly through agricultural value chains

• Strengthened linkages between large buyers and smaller suppliers

• Improved reliability and efficiency across supply networks

By easing liquidity constraints, the initiative aims to create a ripple effect across entire value chains—boosting productivity, stabilising supply, and supporting job creation.

Addressing a Critical Financing Gap

The launch comes against the backdrop of a rapidly expanding global supply chain finance market, which reached an estimated $2.7 trillion in 2025, reflecting an 8% year-on-year increase.

However, access remains highly uneven. Emerging markets—especially in Africa—continue to face significant barriers due to perceived risks, limited financial infrastructure, and a concentration of capital in developed 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," said Mohamed Gouled, IFC's Vice President for Products & Clients.

"By partnering with Standard Chartered, we can unlock working capital at scale for businesses across Africa, making supply chains more competitive and boosting job creation."

Leveraging Global Banking Networks

Standard Chartered's role as a "super-connector bank"—with extensive networks linking Africa to Europe, Asia, the Middle East, and the Americas—positions it to channel capital efficiently into underserved markets.

Dalu Ajene, Chief Executive and Head of Coverage for Standard Chartered Africa, highlighted the strategic importance of the partnership:

"By expanding access to supply chain finance, we are helping African companies unlock liquidity, manage risk, and invest with confidence. This collaboration brings together our cross-border expertise with IFC's development mandate to empower businesses at every level—from major corporates to smaller local suppliers."

A First for IFC's Global Programme

The initiative marks IFC's first project under its Global Supply Chain Finance Program, as well as a key component of the Africa Trade and Supply Chain Recovery Initiative, supported by the International Development Association (IDA) Private Sector Window Blended Finance Facility.

The risk-sharing structure is designed to mitigate exposure for commercial banks, encouraging them to expand lending into markets and segments that would otherwise remain underserved.

Driving Inclusive Growth and Resilience

Beyond immediate financial benefits, the facility is expected to contribute to broader development goals:

• Enhancing food security through stronger agricultural supply chains

• Supporting healthcare supply systems, particularly in essential goods distribution

• Promoting industrial growth in manufacturing sectors

• Advancing inclusive economic participation, especially for SMEs and rural producers

By improving access to finance, the programme aims to unlock long-term growth potential while building resilience against global supply disruptions.

Looking Ahead

As Africa continues to deepen its integration into global trade networks—particularly under frameworks such as the African Continental Free Trade Area (AfCFTA)—access to efficient supply chain finance will be critical.

This IFC–Standard Chartered partnership signals a shift toward innovative, risk-sharing financial models that can scale capital flows into high-impact sectors.

With billions in potential transactions and widespread downstream benefits, the initiative could serve as a blueprint for future efforts to bridge financing gaps and strengthen economic ecosystems across emerging markets.