Trade and Supply Chain Finance

Trade and supply chain finance is critical for combating poverty and improving lives by enabling the uninterrupted flow of essential goods and services and helping to ensure that global supply chains function smoothly and businesses remain afloat.

Trade and supply chain finance is a key pillar of IFC’s strategy to promote the development of the private sector, especially in low-income and fragile countries that have the largest trade finance gaps.

IFC is a leader in emerging market trade and supply chain finance, having supported more than US$200 billion of trade over the past 20 years, much of it in low-income countries.

IFC's Impact in FY24:

  • $12 billion in short-term finance
  • 68% was committed in IDA and fragile and conflict-affected economies

At a Glance

Trade and supply chain finance:

  • Enables growth and economic development, especially in low-income countries;
  • Fosters private sector development in IDA and FCS countries by supporting agriculture and services — areas that produce the most jobs and GDP, and are dominated by MSMEs;
  • Jumpstarts development and virtuous growth cycles by enabling firms in difficult environments to participate in local and global supply chains; and
  • Are highly additional by crowding-in global correspondent banks into high-risk countries and allowing local banks to participate in global correspondent networks.

Programs and Services


IFC's trade and supply chain finance program supports some of the poorest and most high-risk economies, as well as those going through crises. We will continue to expand our product offerings, with a particular focus on sustainable trade and female-owned businesses.

Global Trade Finance Program (GTFP)

Extends and complements the capacity of banks to deliver trade financing by providing risk mitigation in markets where trade lines are constrained.

Global Trade Liquidity Program (GTLP)

Mobilizes financing and channels credit for trade transactions to targeted sectors and regions.

Global Warehouse Finance Program (GWFP)

Increases working capital financing available to agricultural producers or traders by leveraging their commodities in storage.

Global Supply Chain Finance (GSCF)

Provides financing to suppliers engaged in transactions with domestic and international buyers. The program also works with partner financial institutions to promote green supply chain finance and offers advisory services that enhances financial access for SME suppliers.

Advisory Services

IFC’s advisory team provides capacity building and training programs for local financial institutions to help them kick start trade and supply chain finance operations.

Focus Areas
 

Sustainable Trade

A significant share of financial flows required to support the Paris Agreement goals is represented by cross-border financing of equipment, goods and commodities needed for the deployment of clean energy technologies, energy efficiency upgrades, and climate smart agriculture.

Women in Trade

In emerging markets, one-third of small businesses are owned by women, but few have access to the trade finance that is needed to for them grow and thrive.

Stories of Impact

EVENT

Global Trade Partners Meeting

In May 2024, IFC convened its 8th Global Trade Partners Meeting in Barcelona with 340 participants representing 57 countries.

Insights & Reports