In sub-Saharan Africa, the essential engine of growth has been severely tested by the COVID-19 health crisis. A situation that caught the attention of the International Finance Corporation (IFC), which signed an agreement with Absa Bank this Wednesday, November 17, 2021. The goal is to stimulate trade financing in the sub-Saharan zone.

The IFC has just welcomed Absa Bank Ltd. in its Global Trade Liquidity Program (GTLP) to improve access to trade finance in sub-Saharan Africa. This partnership will dedicate a combined investment of $250 million. With this financing, IFC and Absa Bank, one of Africa's largest financial institutions, will channel credit into a trade transaction portfolio that is expected to facilitate up to $1.6 billion in trade over the next three months. years. The funding will support Absa's commitment to increasing the accessibility of trade finance, with approximately 80 percent of funding expected to go to low-income and fragile countries.

Under the GTLP risk-sharing model, IFC will guarantee a pool of eligible trade transactions issued by Absa Bank up to 50%, with the remaining amount guaranteed by Absa Bank.