The International Finance Corporation (IFC) is considering a financing package of up to US$100 million for Ghana International Bank Plc (GHIB) to support trade flows across Africa, as efforts intensify to address the continent’s persistent trade finance gap.
The proposed facility, structured as a senior unsecured loan with a three-year tenor and a one-year grace period, is expected to be disbursed in two equal tranches, according to project documents.
Disbursement of the second tranche will be contingent on the full utilisation of the first, a mechanism aimed at ensuring that funds are effectively deployed into GHIB’s trade finance operations.
The project is scheduled for review by the IFC’s board on May 11.
GHIB, a London-based bank specialising in trade finance and correspondent banking services for Africa, plays a key role in facilitating cross-border transactions between the continent and global markets.
Founded in 1959 as Ghana’s first international bank in London and incorporated as an independent institution in 1998, GHIB serves a wide client base including banks, corporations and small and medium-sized enterprises.
The bank is also the collection agent for the Ghana Cocoa Board’s annual syndicated loan programme, valued at around US$1 billion, and processed more than US$8 billion in payments for West African financial institutions in 2023.
Ownership of GHIB is dominated by Ghanaian institutions. The Bank of Ghana holds a majority stake of about sixty-five point four per cent, followed by GCB Bank Plc with fourteen point one per cent, the Social Security and National Insurance Trust with ten point six per cent, the Agricultural Development Bank with six point four per cent, and SIC Insurance Company with three point five per cent.
The proposed IFC financing comes against the backdrop of a significant trade finance shortfall across Africa, estimated in the tens of billions of dollars annually.
This gap — driven by limited access to credit, risk aversion among international banks and regulatory constraints — continues to constrain trade activity and limit the participation of African firms in global value chains.
Development finance institutions such as the IFC have increasingly stepped in to provide liquidity and risk-sharing mechanisms to local and regional banks, enabling them to expand lending for import and export transactions.
Analysts say strengthening trade finance capacity is critical for boosting intra-African trade, particularly as the continent implements frameworks such as the African Continental Free Trade Area (AfCFTA), which aims to deepen regional integration.
By supporting GHIB, the IFC aims to enhance the bank’s ability to extend trade finance to African counterparties, including smaller lenders and businesses that often struggle to access international credit lines.
The facility is also expected to support essential imports and exports, helping to stabilise supply chains and promote economic activity across multiple sectors.
If approved, the transaction would represent another step in IFC’s broader strategy to mobilise capital for trade and financial inclusion in emerging markets, particularly in Africa, where financing constraints remain a major barrier to growth.
The outcome of the board’s decision next month will determine whether the funding moves forward, as stakeholders look to scale up efforts to close the continent’s longstanding trade finance gap.
