According to africabusinesscommunities.com, the International Finance Corporation (IFC) and Sumitomo Mitsui Banking Corporation (SMBC) have launched a $500 million supply chain finance facility to expand access to working capital for small and medium-sized enterprises in emerging markets.
$500 million facility targets emerging-market supply chains
The facility links financing to the credit strength of large anchor buyers rather than the individual financial profiles of their suppliers. This structure enables SMEs—including many with limited formal credit histories—to receive early payment on approved invoices at more favorable rates. IFC will provide up to $250 million in direct funding, while SMBC contributes an equal $250 million, allowing for longer financing periods and higher transaction volumes across supplier networks.
The first anchor buyer is a large food manufacturer in Latin America. The model is designed for replication across additional buyers, sectors, and markets, with geographic scope explicitly including Latin America as the initial deployment region.
According to the report, the facility was structured through IFC’s Global Supply Chain Finance (GSCF) programme, which launched in 2023 and has already supported over $3.8 billion in supplier finance transactions globally.
Supply chain finance aims to strengthen SME resilience
The source states that limited access to finance remains a major constraint for businesses in emerging markets, where the MSME finance gap is measured in trillions of dollars. Many smaller businesses lack the documented financial histories required to access formal banking services. The facility creates a verifiable transaction record for participating suppliers, beginning with early payment within days of invoice approval by the buyer.
Nathalie Louat, Global Director for Trade and Supply Chain Finance at IFC, said:
“Supply chain finance is one of the most effective tools to put working capital directly in the hands of small businesses in emerging markets — quickly, affordably, and at scale. By partnering with SMBC and leveraging the creditworthiness of established buyers, we can reach suppliers that the market alone would not serve, giving them not just liquidity today, but the financial footing to grow their businesses and create jobs.” — Nathalie Louat, Global Director for Trade and Supply Chain Finance at IFC
Priyamvada Singh, Global Head of Sales, Global Trade Finance, SMBC, added:
“Supporting resilient global supply chains is a key priority for SMBC. Our partnership with IFC enhances our ability to provide working capital solutions to suppliers, enabling them to manage liquidity more effectively, support business growth, and contribute to the stability and efficiency of global trade and supply chains.” — Priyamvada Singh, Global Head of Sales, Global Trade Finance, SMBC
Source: africabusinesscommunities.com
Compiled from international media by the SCI.AI editorial team.
