The International Finance Corporation and Standard Chartered have launched a $300m risk-sharing facility aimed at expanding access to supply chain finance for businesses across eight African countries, including Nigeria.
The initiative, announced in a statement by Standard Chartered on Wednesday, is expected to support supply chain and trade finance transactions valued at about $1.9bn over the next three years.
According to the statement, the programme is projected to benefit more than 500 suppliers, including small and medium-sized enterprises operating across Africa.
Nigeria among beneficiary countries
The programme will be implemented in Nigeria, Côte d’Ivoire, Egypt, Ghana, Kenya, South Africa, Tanzania and Zambia.
It will target key sectors such as agriculture, healthcare and manufacturing, with a focus on improving access to working capital for businesses facing persistent funding shortages.
The facility is designed to ensure suppliers receive payments faster, helping businesses improve cash flow, expand production, pay wages and invest in growth.
IFC to provide $150m guarantee support
Under the arrangement, IFC will provide guarantees of up to $150m, with an initial commitment of $100m.
The guarantees will support transactions denominated in United States dollars and selected local currencies.
According to the statement, the risk-sharing structure will cover up to $300m in supply chain and trade finance assets originated by Standard Chartered across Africa.
The financing tools to be deployed under the programme include payables finance, receivables discounting and pre-shipment finance schemes.
“The facility will help ensure their suppliers get faster payments, freeing up the working capital they need to improve production, pay wages, and hire,” the statement said.
SMEs facing growing finance challenges
The partnership comes amid rising concerns over the financing gap confronting businesses in emerging markets, particularly SMEs that struggle to secure affordable credit.
IFC Vice President for Products and Clients, Mohamed Gouled, said supply chain finance remains one of the quickest ways to bridge funding shortages in developing 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,” Mr Gouled said.
He added that the initiative would help unlock working capital for businesses, farmers and suppliers across Africa while improving supply chain competitiveness and supporting job creation.
Standard chartered highlights trade expansion
Chief Executive and Head of Coverage, Standard Chartered Africa, Dalu Ajene, described the partnership as a major step toward strengthening African supply chains and supporting sustainable growth.
“This $300m facility with IFC underscores our shared commitment to strengthening Africa’s supply chains and enabling sustainable business growth,” Mr Ajene stated.
He explained that Standard Chartered’s presence across major trade corridors connecting Africa with Europe, Asia, the Middle East and the Americas would help channel financing to businesses involved in regional and international trade.
Global supply chain finance market expands
The statement noted that the global supply chain finance market reached an estimated $2.7tn in 2025, representing an eight per cent increase from the previous year.
Despite the growth, access to such financing remains limited in many low-income and emerging economies due to limited lender participation.
The new initiative is expected to reduce risks associated with short-term trade and supply chain finance portfolios and encourage increased lending in capital-constrained African markets.
The project also marks IFC’s first initiative under its Global Supply Chain Finance Programme and the Africa Trade and Supply Chain Recovery Initiative.
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