By Elijah Odhiambo
The Global Trade Liquidity Programme (GTLP) of the International Finance Corporation (IFC) has received an investment of US$700 million (Sh94.3 billion) from Standard Chartered to boost international trade finance in Asia, the Middle East, Africa, and Latin America.
The facility is anticipated to support up to US$6.4 billion(Ksh862.4billion) in international trade over three years by supporting about 850 importers and exporters involved in critical commodities, basic goods, and other essential materials to meet market demand.
Sunil Kaushal, Regional Chief Executive Officer for Africa and Middle East at Standard Chartered said the partnership with the IFC since 2009 testifies the organisations’ unwavering commitment to sealing the trade finance gap.
“We are delighted to renew the GTLP, a longstanding partnership with the IFC since 2009 that is testament to both organisations’ unwavering commitment to narrow the trade finance gap,” said Sunil Kaushal.
He noted that s a trade bank, they have a crucial role to play in enhancing the accessibility to the capital and liquidity needed to facilitate global trade, and to do so in a sustainable manner.
The GLTP facility, which brings together governments, international development and financial organizations, as well as private sector banks, has demonstrated to be a highly effective method of channeling financing to promote emerging market trade flows.
The initiative helps banks increase their loan limits, manage risk, and boost commerce among developing markets, which are frequently underserved, by providing liquidity or guarantees.
According to Mohamed Gouled, IFC Vice President, the partnership has played a leading role in supporting trading activities in developing markets.
“The joint work of Standard Chartered and the IFC Trade & Supply Chain Department over the years has helped support trade in Emerging Markets, a key component of growth and job creation,” Mohammed said.
He noted that IFC is looking forward to continuing to innovate together and to further expand the impactful partnership in trade with an increased focus on Sub-Saharan Africa and supporting smaller suppliers further down the supply chain.
“Given our aligned footprint, shared vision for sustainable development and ability to deploy capital and expertise where our support is needed the most, I look forward to continuing to innovate together and to further expanding our impactful partnership in trade with an increased focus on Sub-Saharan Africa and supporting smaller suppliers further down the supply chain,” said Mohammed.
Since the launch of the initial facility in 2009, the Standard Chartered GTLP facilities have shown strong reach and impact in supporting trade in emerging markets, as well as low/lower-middle-income countries.
IFC, a member of the World Bank Group,is the largest global development institution focused on the private sector in emerging markets. It works in more than 100 countries, using their capital, expertise, and influence to create markets and opportunities in developing countries.
In fiscal year 2022, IFC committed a record US$32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises