The International Finance Corporation (IFC) and Standard Chartered Bank have launched a $300 million risk-sharing facility aimed at expanding access to supply chain finance for businesses across eight African countries, including Nigeria, as companies continue to face significant funding constraints.
The initiative is expected to support approximately $1.9 billion in supply chain and trade finance transactions over the next three years, benefiting more than 500 suppliers, including micro, small and medium-sized enterprises (MSMEs).
According to a statement announcing the partnership, the programme will be implemented in Nigeria, Côte d’Ivoire, Egypt, Ghana, Kenya, South Africa, Tanzania and Zambia, with a focus on key sectors such as agriculture, healthcare and manufacturing.
The facility is designed to improve access to working capital by enabling suppliers to receive payments more quickly, helping businesses strengthen cash flow, expand production, pay employees and invest in growth opportunities.
Under the arrangement, IFC, the private sector arm of the World Bank Group, will provide guarantees of up to $150 million, beginning with an initial commitment of $100 million. The guarantees will support transactions denominated in both United States dollars and selected local currencies.
The risk-sharing structure will cover up to $300 million in supply chain and trade finance assets originated by Standard Chartered across participating African markets.
To improve financing access for smaller businesses, the programme will deploy a range of financial instruments, including payables finance, receivables discounting and pre-shipment financing solutions.
The partners said the initiative is expected to address one of the biggest challenges facing African businesses, particularly MSMEs, which often struggle to secure affordable financing despite their critical role in economic growth, employment creation and value-chain development.
The facility is projected to strengthen supply chains across the continent while providing businesses with the liquidity required to scale operations, manage risks and improve competitiveness.
IFC noted that supply chain finance remains one of the fastest and most effective tools for narrowing the financing gap confronting businesses in emerging economies.
The institution added that the partnership would help unlock working capital at scale for businesses operating within strategic value chains, including smaller enterprises and agricultural producers.
Beyond direct beneficiaries, the initiative is expected to indirectly support more than one million farmers through stronger value-chain linkages and improved access to finance.
Standard Chartered said the partnership reflects a shared commitment to strengthening Africa’s supply chains and promoting sustainable business growth.
The bank noted that its presence across major trade corridors connecting Africa with Europe, Asia, the Middle East and the Americas would help channel financing to businesses engaged in both regional and international trade.
According to the bank, expanding access to supply chain finance will enable African businesses to unlock liquidity, invest with greater confidence and participate more actively in global markets.
The initiative also aims to support job creation, enhance business resilience and drive inclusive economic growth across participating countries.
Industry data cited in the statement showed that the global supply chain finance market reached an estimated $2.7 trillion in 2025, representing an eight per cent increase from the previous year. Despite this growth, access to such financing remains limited in many emerging and low-income economies, where businesses continue to face significant capital shortages.
The new facility seeks to reduce risks associated with short-term trade and supply chain finance portfolios, encouraging greater lending activity in markets where access to capital remains constrained.
The project marks IFC’s first transaction under its Global Supply Chain Finance Programme and the Africa Trade and Supply Chain Recovery Initiative, supported by the International Development Association Private Sector Window Blended Finance Facility.