• IFC considers $100m loan to Ghana International Bank

• Funds to support trade finance, disbursed in two tranches

• Deal targets Africa’s trade finance gap, worth billions

The International Finance Corporation (IFC) is considering a senior unsecured loan of up to $100 million to Ghana International Bank Plc (GHIB), a London-based bank specializing in trade finance and correspondent banking services for Africa.

The three-year facility, which includes a one-year grace period, will be disbursed in two equal tranches. The second tranche will be available only after the first has been fully used, to ensure proper deployment of funds into GHIB’s trade finance portfolio. The project is scheduled to go before the IFC board on May 11.

Founded in 1959 as Ghana’s first international bank in London, GHIB was incorporated as an independent bank in 1998. Regulated by British authorities, the bank aims to facilitate trade and investment flows between Africa and global markets, serving banks, corporations and small and medium-sized enterprises across the continent. GHIB is the collection agent for the Ghana Cocoa Board’s (Cocobod) annual lending programme of about $1 billion and processed more than $8 billion in payments for West African financial institutions in 2023.

The Bank of Ghana is the majority shareholder, holding about 65.4% of the capital. GCB Bank Plc (14.1%), the Social Security and National Insurance Trust (10.6%), the Agricultural Development Bank (6.4%) and SIC Insurance Company (3.5%) make up the rest of the shareholder base.

The financing comes as Africa’s trade finance gap is still estimated in the tens of billions of dollars annually, a shortfall hindering the continent’s integration into global value chains.

Fiacre E. Kakpo