A new trade finance guarantee facility in Angola is set to support businesses, particularly small and medium enterprises (SMEs), by improving access to critical inputs, ensuring timely deliveries, and sustaining and creating jobs across key value chains. Provided to Banco de Fomento Angola (BFA) through the International Finance Corporation’s (IFC) Global Trade Finance Program (GTFP), the facility aims to de-risk cross-border transactions, strengthen supply chains, and enhance Angola’s integration into regional and global markets.
Angola’s limited access to foreign exchange and correspondent banking relationships has constrained cross-border payments, affecting sectors like food and agriculture where imports are essential. By backing BFA’s issuance of trade instruments such as letters of credit, promissory notes, and guarantees, the facility enables firms to trade more smoothly, scale operations, and create employment. This support is expected to boost productivity, strengthen value chains, and enhance food security, while expanding trade finance access across agribusiness, manufacturing, and essential goods sectors.
The partnership between IFC and BFA aligns with the World Bank Group’s strategy to enhance private sector finance as a driver of economic growth, helping firms access fertilizers, seeds, raw materials, equipment, and other inputs that directly contribute to resilient supply chains and new job creation. With over 188,000 firms already supported globally through GTFP, the initiative underscores the critical role of trade finance in unlocking economic growth, promoting diversified development, and empowering Angolan businesses to participate more effectively in regional and global markets.
