To help boost trade in Guinea amidst local and global challenges, IFC today announced a trade finance facility of up to $5 million for Coris Bank International Guinea (CBI Guinea).
The trade facility, which falls under IFC's Global Trade Finance Program (GTFP), will provide per-transaction guarantees for CBI's trade finance operations. By decreasing CBI's risk during a time of regional economic uncertainty, IFC will support CBI Guinea to help more businesses finance the imports of essential goods, including foodstuffs, construction materials, and vehicles.
IFC's investment is part of the $1 billion African Trade and Supply Chain Finance Program (ATRI), which was created to support Africa's regional trade development, helping reduce the continent's reliance on imports and reducing the trade finance gap exacerbated by the COVID-19 pandemic.
"For Coris Bank International Guinée, this partnership proves our ability to forge strategic partnerships with major institutions such as IFC. It gives us the guarantees we need to continue supporting trade development between Guinea and the rest of the world", says Christelle Dieng, Managing Director of CBI Guinea.
"Trade plays a key role in Guinea, which is endowed with considerable natural resources. Increasing the availability of trade finance in Guinea is therefore critical to support businesses and jobs and help keep trade flowing in the country," said Claude Owona, IFC's Manager for Financial Institutions for West Africa. "Access to trade financing is especially important as businesses face new challenges arising from regional and global economic uncertainty."
IFC's GTFP extends and complements the capacity of banks to deliver trade financing by providing risk mitigation in new or challenging markets where trade lines may be constrained. Under the program, IFC has issued guarantees worth more than $100 billion globally to date. In financial year 2023 alone, IFC issued $9.1 billion, of which $3.5 billion was in Africa.
IFC's strategic priorities for Guinea focus on supporting the development of a sustainable mining sector, increasing access to finance for MSMEs, improving the business climate, and supporting agribusiness value chains. As of March 2024, IFC had an active investment portfolio of US$ 250 million in Guinea that is supporting these key sectors.