Finance

Supply chain funding boost for Africa

African-woman-logistics-worker-notebook-computer-checking-container

Finance boost for Africa’s supply chain sector (Image source: Adobe Stock)

Standard Chartered and the International Finance Corporation (IFC) have announced a new risk sharing facility aimed at strengthening supply chains across Africa

The partnership will introduce supply chain finance solutions in eight markets – Ivory Coast, Egypt, Ghana, Kenya, Nigeria, South Africa, Tanzania and Zambia – supporting companies in key sectors such as agriculture, healthcare and manufacturing.

The facility aims to help ensure suppliers get faster payments, freeing up working capital to improve production, pay wages and hire.

The risk-sharing facility will cover up to US$300mn in supply chain and trade finance assets originated by Standard Chartered in Africa.

It comprises a range of underlying supply chain financing instruments – such as payables finance, receivables discounting and pre-shipment finance programmes – to help smaller firms get paid earlier, reduce the cost of working capital, and invest in growth.

“This US$300mn 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, Standard Chartered Africa.

“As a super-connector bank with deep expertise across key trade corridors linking Africa to Europe, Asia, the Middle East and the Americas, we are uniquely positioned to channel capital and innovation into the real economy. By expanding access to supply chain finance, we are helping African companies unlock liquidity, manage risk, and invest with confidence.”

Ajene said the collaboration unites Standard Chartered’s cross-border expertise with IFC’s development mandate to empower businesses – from major corporations to smaller local suppliers – “to engage more actively in regional and global trade, fostering job creation and promoting inclusive growth.”

IFC will provide guarantees for up to US$150mn from its own account, with US$100mn committed as the first tranche under the scheme, to support transactions in both US dollars and selected local currencies.

Over the next three years, the partnership is projected to enable about US$1.9bn in supply chain finance transactions, providing access to finance for firms across Africa.

It aims to support more than 500 suppliers, including small and medium enterprises (SMEs), in both domestic and global value chains, with the potential to indirectly benefit over 1 million farmers.

“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, products & clients.

“By partnering with Standard Chartered to support companies at the center 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.”

According to IFC, global demand for supply chain finance has surged – in 2025, the estimated volume reached about US$2.7trn, showing an 8% increase year-on-year.

Yet supply chain finance has not scaled at the same pace in emerging markets, it says, especially in lower income and fragile contexts, largely because commercial banks tend to focus on developed markets.

New trade finance facility for Angolan firms

Vantage Capital, Greenpoint funding to boost SolarAfrica

AFC green bond to boost Ivorian solar sector

AFC-businesspeople-Poro-Power-green-bond

AFC reaches financial close on the Poro Power Green Bond (Image source: Adobe Stock)

Africa Finance Corporation (AFC) has reached financial close and disbursed €43mn under the Poro Power Green Bond, to be used to fund construction of a 66 MW solar power plant in the northern Korhogo region in Cote d’Ivoire

Structured as a €65mn dual-currency facility in euros and CFA francs, it marks the first project finance green bond in Cote d’Ivoire and across the West African Economic and Monetary Union (WAEMU).

The solar power plant, developed by Poro Power, is expected to be operational in 2027 and will become the country’s largest solar plant.

The solar plant is expected to provide electricity to more than 100,000 households and avoid over 72,000 tons of CO2 emissions annually, contributing to greater energy access and the country’s target of increasing the share of renewables in the energy mix to 45% by 2030.

AFC acted as lead underwriter and co-arranger, helping to structure the innovative dual-currency green bond that creates what it called a ‘replicable model’ for mobilising African capital into bankable infrastructure.

It also called the transaction a milestone for Côte d’Ivoire’s capital markets and for African infrastructure more broadly.

Historically, long-term infrastructure financing in the country has depended heavily on international capital.

By contrast, the Poro Power Green Bond was African-led, structured, and fully funded by African institutions.

Samaila Zubairu, president and CEO of AFC, said the Poro Power Green Bond sets a new benchmark for sustainable infrastructure financing in Africa.

“This landmark transaction demonstrates the growing capacity of African institutions to mobilise domestic capital and expertise to deliver transformative infrastructure projects,” said said Zubairu.

“We are not only helping to close the infrastructure gap, but also creating scalable, homegrown financing models that can be replicated across the continent.”

The transaction builds on AFC’s track record in Côte d’Ivoire across the power and transport sectors.

In the energy sector, it includes the 44MW Singrobo-Ahouaty hydropower project, Côte d’Ivoire’s first private hydro independent power producer.

Its investments in the country also include the 1.5km Henri Konan Bédié Bridge, which has eased congestion by 30% since commissioning and improved mobility in Abidjan.

In 2024, AFC also supported the Ivorian government in awarding six road development contracts worth €691.6mn.

Vantage Capital, Greenpoint funding to boost SolarAfrica

South Africa's US8bn windfall from Afreximbank entry

New trade finance facility for Angolan firms

Trade finance to unlock business in Angola

The International Finance Corporation (IFC) has launched a new trade finance guarantee scheme to support Angolan businesses in association with local banks

The facility is provided to Banco de Fomento Angola (BFA) under the Global Trade Finance Program (GTFP), an initiative of the IFC, the World Bank’s private finance arm.

It is open to firms including small and medium enterprises (SMEs) to secure the inputs they need, deliver to customers on time and sustain and create jobs across key value chains.

By de‑risking trade transactions and improving the reliability and speed of cross‑border payments, the facility will strengthen supply chains, support more diversified growth, and deepen Angola’s integration into regional and global markets, the IFC said in a statement.

“Trade finance keeps businesses going,” said Makhtar Diop, IFC's managing director.

“Working with BFA, we’re helping Angolan firms access vital imports, trade more smoothly across borders, and create jobs, strengthening supply chains and the wider economy.”

Trade finance remains a “binding constraint” for many African firms, the IFC noted.

The continent faces an estimated trade finance gap of roughly US$100bn to US$120bn annually, with SMEs disproportionately affected, despite representing over 90% of businesses and accounting for about 80% of employment in Africa.

The new trade finance facilityis expected to unlock trade, boost businesses and support jobs in Angola, where access to foreign exchange and limited correspondent banking relationships have complicated cross-border payments, making it harder for firms to source inputs and fulfil orders.

These constraints impact sectors like food and agriculture, where Angola imports a substantial share of its consumption needs and firms require steady access to inputs; recent assessments indicate Angola imports over half of its food, underscoring the importance of reliable trade finance to keep supply chains flowing.

Through the Global Trade Finance Programme, IFC’s guarantees will back BFA’s issuance of trade instruments, such as letters of credit, trade‑related promissory notes and bills of exchange, and standby instruments including bid and performance bonds and advance payment guarantees.

By de‑risking cross‑border transactions, the facility is designed to help BFA grow its trade portfolio, broaden its network of counterparties, and expand access to trade finance for Angolan firms across sectors, including agribusiness, manufacturing and essential goods.

The goal is to strengthen Angola’s integration into regional and global value chains while relieving pressure points that often hinder SMEs from scaling and creating jobs.

“We are confident this partnership will have a positive impact not only on communities but also on the Angolan economy,” said Luís Roberto Gonçalves, BFA’s CEO.

It means BFA will have more instruments at its disposal to finance SME enterprises in productive sectors of the economy, boosting food production and distribution, enhancing food security and creating jobs.

“This partnership reaffirms BFA’s commitment to scaling solutions that advance the development of Angola’s financial system and reinforce the trust our clients and partners place in us.”

It also aligns with the World Bank’s strategy to grow access to finance in Angola's private sector as a means of unlocking economic growth.

Reliable trade finance will ensure access to fertiliser and seeds for farmers, packaging and raw materials for manufacturers, and spare parts and equipment for service providers.

South Africa's US$8bn windfall from Afreximbank entry

AFC confirms Nigeria power bond issue

Vantage Capital, Greenpoint funding to boost SolarAfrica

New funding to boost Africa's renewables sector (Image source: Adobe Stock)

Vantage Capital, Africa’s largest mezzanine debt fund manager, is stepping up its involvement in South Africa’s solar energy industry

The finance group announced that it has made a R635mn (US$40mn) investment, alongside co-investor, Greenpoint Capital, into Commercial Energy South Africa (CESA), a subsidiary of SolarAfrica Energy.

CESA holds commercial and industrial (C&I) solar and battery energy assets developed by SolarAfrica, a leading South African energy solutions provider.

The investment comprises a mezzanine facility which was used to exit Inspired Evolution from CESA, making SolarAfrica the 100% owner of CESA.

“This transaction reflects our conviction in distributed energy infrastructure and the strength of SolarAfrica’s platform,” said Roshal Ramdenee, a partner at Vantage Capital.

“CESA’s contracted C&I solar and battery portfolio provides predictable cash flows and supports South Africa’s shift to reliable and sustainable power. We look forward to working closely with SolarAfrica and Greenpoint as the platform continues to scale.”

The move also reflects growing investor appetite in the distributed energy sector more broadly.

Founded in 2011, SolarAfrica provides solar-PV, battery storage, energy trading, electricity wheeling and gas-to-power services tailored for C&I clients, helping businesses lower electricity costs, secure reliable power and reduce carbon emissions.

It has a strong track record, having delivered around 343MW of funded solar projects across southern Africa, with a further 1.14GW being rolled out.

CESA acts as a holding company for C&I rooftop solar and battery storage solutions assets that have been developed by SolarAfrica.

It currently holds a portfolio of assets with energy capacity of around 90MW across 134 different sites.

“Vantage has provided senior debt to a number of renewable energy projects through its GreenX senior debt division,” said Warren van der Merwe, managing partner at Vantage Capital.

“We are pleased to showcase in this deal how mezzanine finance can play a part in the rapidly evolving power sector.”

Charl Alheit, CIO at SolarAfrica, said the transaction would help to advance the group’s core mission to bring more power to more people and firms across Africa.

“Taking full control of the portfolio means we can continue to innovate by bringing more renewable energy solutions, such as electricity wheeling, to customers,” said Alheit.

“This underscores our commitment to making cheaper, greener power more accessible to C&I businesses as part of their green energy journey.”

Step Advisory acted as deal advisor to SolarAfrica on the transaction, Werksmans acted as legal counsel for Vantage. Other advisors to the transaction included Cresco, Ernst and Young, Webber Wentzel and SLR Consulting.

AFC confirms Nigeria power bond issue

Africa poised for growth despite geopolitical upheaval

South Africa nets US$8bn from Afreximbank entry

Afreximbank accession to help power South Africa’s economy (Image source: Adobe Stock)

South Africa has joined the ranks of the African Export-Import Bank (Afreximbank), bringing with it an US$8bn country programme that will target industrialisation efforts in the republic, and support projects in sectors like mining, automotives and manufacturing

It becomes the 54th state to accede to the banking group, marking the formal entry of one of Africa’s largest economies into the Bank’s membership, “heralding deeper financial sovereignty,” an Afreximbank statement read.

The bank called the accession a “historic milestone” as the two partners seek to unlock trade opportunities “within a global financial architecture that is rapidly fragmenting due to protectionist policies and shifting trade blocks.”

The US$8 billion country programme aims to enhance industrial development and regional supply chains and boost intra-African trade and investment flows, Afreximbank said.

“We have put together what we consider an important package of US$8bn for South Africa,” said Dr George Elombi, the bank’s president and chairman.

“The country programme is aligned with South Africa's national development plan 2030 and national industrial and trade priorities, and targets key strategic areas.”

He added that Afreximbank’s current pipeline of projects in South Africa, at different stages of review, already exceeds US$6bn, spanning healthcare, financial services, manufacturing, energy and the industrial and mining sectors.

Leveraging Afreximbank’s trade infrastructure and pan-African reach, South Africa can also more readily diversify export markets and further regional economic integration.

South African President Cyril Ramaphosa called it a milestone in the quest to realise the economic integration of our continent.

“South Africa’s accession to the African Export-Import Bank affirms our commitment to African industrial development and to deepening trade, investment and development across our continent,” he said.

“Once finalised, the South African-Afreximbank country programme will be operationalised with a finance package that will initially support a range of strategic projects across the trade and industrial cluster.”

He said one of those areas to receive immediate effect will be the nation’s Transformation Fund with the aim of supporting more black businesses.

“This partnership will strengthen in more ways than one South Africa’s ability to support South African exporters, industrial projects and regional value chains while advancing our continent’s progress.”

Read more:

AFC confirms Nigeria power bond issue

Africa poised for growth despite geopolitical upheaval

AFC, Eaglestone share the Lobito limelight