(Ecofin Agency) - This pilot project aims to reduce the financing deficit of importing and exporting companies, in emerging countries, including African nations. It has a dedicated budget of $300 million.
The International Finance Corporation (IFC) and Citibank have launched, together, a project to finance the supply chain in emerging markets. Announced yesterday, September 11, the project will allow both the IFC and Citibank to provide “innovative and affordable financing options” to essential goods’ importers and exporters across Africa. The initiative has a $300 million budget.
Citibank will, through the project, leverage IFC's expertise in emerging markets to help its clients grow their supply chains in these markets. The program is designed to bridge the financing gap for small and medium-sized enterprises (SMEs) and suppliers of essential goods.
The joint project falls under the IFC's Global Supply Chain Financing (GSCF) program, and it aims to tackle supply chain disruptions.
According to Nathalie Louat, Global Director of Trade and Supply Chain Financing at the IFC, the supply chain financing deficit is a major issue for businesses and communities worldwide, especially for SMEs, as it limits economic growth and reduces job creation opportunities.