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.

The initiative is expected to support supply chain and trade finance transactions valued at approximately $1.9 billion over the next three years, providing financing support to more than 500 suppliers across key sectors of the economy.

According to details released by Standard Chartered Bank, the programme will be implemented in Nigeria, Côte d’Ivoire, Egypt, Ghana, Kenya, South Africa, Tanzania and Zambia.

The facility is targeted at businesses operating in agriculture, healthcare, manufacturing and other strategic sectors where access to working capital remains a major challenge.

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Under the arrangement, IFC will provide guarantees of up to $150 million, beginning with an initial commitment of $100 million. The guarantees will support transactions conducted in United States dollars and selected local currencies.

The programme is structured to support up to $300 million in supply chain and trade finance assets originated by Standard Chartered across participating African markets.

Officials said the facility is designed to improve liquidity for suppliers by accelerating payment cycles and expanding access to working capital required for day-to-day business operations.

The financing framework will utilise instruments such as payables finance, receivables discounting and pre-shipment finance solutions to support suppliers and strengthen trade activities across regional value chains.

According to the institutions, the programme is expected to improve cash flow for businesses, enabling them to increase production capacity, meet operational obligations and support employment growth.

The initiative comes at a time when businesses across emerging markets continue to face financing constraints, particularly small and medium-sized enterprises that often struggle to obtain affordable credit despite their importance to economic development.

IFC Vice President for Products and Clients, Mohamed Gouled, said supply chain finance remains one of the most effective mechanisms for addressing funding shortages affecting businesses in developing economies.

He stated that the partnership with Standard Chartered would support companies operating within strategic value chains while unlocking additional working capital for businesses across Africa, including smaller enterprises and agricultural producers.

According to him, strengthening access to finance would improve competitiveness across supply chains and contribute to job creation in participating markets.

The institutions projected that the programme could indirectly support more than one million farmers through stronger value-chain integration and improved access to financing opportunities.

Chief Executive and Head of Coverage for Standard Chartered Africa, Dalu Ajene, said the facility reflects a shared commitment by both organisations to strengthen supply chains and support sustainable business growth across the continent.

He noted that the programme would expand financing opportunities for businesses while helping companies improve liquidity management and mitigate financial risks.

Ajene stated that Standard Chartered’s presence across major international trade corridors linking Africa with Europe, Asia, the Middle East and the Americas would help facilitate access to finance for businesses engaged in regional and global commerce.

According to him, broader access to supply chain finance would allow companies to invest more confidently, improve operational efficiency and expand their participation in international trade.

He added that the initiative would support businesses of different sizes, ranging from large corporations to local suppliers, while contributing to inclusive economic growth and employment generation.

Industry observers said access to working capital remains one of the most significant barriers to growth for many businesses across Africa, particularly SMEs operating within critical supply chains.

They noted that risk-sharing arrangements involving development finance institutions can help reduce financing constraints and encourage greater lending activity in underserved markets.

Market participants also said programmes that improve liquidity for suppliers often strengthen business resilience and support expansion across production and distribution networks.

The statement highlighted the rapid growth of the global supply chain finance market, which reached an estimated value of $2.7 trillion in 2025.

Despite this growth, stakeholders noted that access to supply chain finance remains limited in several emerging and low-income economies due to risk concerns and limited financing capacity.

According to the institutions, the new facility is intended to reduce risks associated with short-term trade and supply chain finance portfolios while encouraging greater participation by financial institutions in markets where access to capital remains constrained.

The programme represents IFC’s first transaction under its Global Supply Chain Finance Programme and the Africa Trade and Supply Chain Recovery Initiative, which is supported by the International Development Association Private Sector Window Blended Finance Facility.

Stakeholders expressed optimism that the partnership would strengthen supply chains, improve access to finance and support economic growth across participating African economies over the coming years.