New trade finance facility for Angolan firms

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.

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