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International Finance Corporation (IFC), today, welcomed Absa Bank Ltd. to its Global Trade Liquidity Program (GTLP) to boost access to trade finance in sub-Saharan Africa, especially in low income and fragile countries, thereby supporting a vital driver of growth that has been strained by the COVID-19 pandemic.

Through a combined investment of $250 million, IFC and Absa Bank, one of Africa’s largest financial institutions, will channel credit to a portfolio of trade transactions that is expected to facilitate up to $1.6 billion in trade over the next three years. The financing will support Absa’s commitment to increase the accessibility of trade finance, with around 80 percent of financing 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 by up to 50 percent, with the remaining amount being guaranteed by the bank.

IFC’s GTLP program was established to provide financing to partner banks, helping them minimize risk in trade financing and facilitate increased trade in emerging markets, especially for underserved importers and exporters and small businesses.
 
Since its launch in 2009, the GTLP program has supported more than $75 billion in global trade volume via nearly 27,000 transactions, of which more than $24 billion has represented trade in low-income countries.
 
IFC is the arm of the World Bank Group that lends to the private sector in emerging markets. According to the multilateral lender, it committed a record $31.5 billion to private companies and financial institutions in developing countries in fiscal 2021.

Absa Bank is a subsidiary of Absa Group Limited (Absa Group), which is listed on the Johannesburg Stock Exchange and is one of Africa's largest diversified financial services groups. The Group owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa (Absa Bank), Tanzania (Absa Bank Tanzania and National Bank of Commerce), Uganda and Zambia. It also has representative offices in Namibia and Nigeria.