Sub-Saharan Africa gets nearly $1b of IFC’s $4.6b global finance guarantees in 2011 fiscal year

The World Bank’s International Finance Corporation (IFC) at the end of its 2011 fiscal year, which ended on June 30, 2011 had provided 3,106 trade finance guarantees amounting to $4.6 billion on behalf of issuing banks to help businesses in the developing world through its Global Trade Finance Program (GTFP).

The total $4.6 billion of guarantees issued was an increase of $1.2 billion over fiscal year 2010 which was worth $2.4 billion, and represents a growth of 40%, states the IFC August 12, 2011 on its website.

Out of the total amount in the 2011 fiscal year, IFC says the volume of guarantees to sub-Saharan Africa “has grown to $931 million in 25 countries, 24 of which are International Development Association (IDA) countries.

The GTFP has expanded into new markets such as the Central African Republic and seen its first transactions in Rwanda, it noted.

According to the Corporation, nearly 80% of the support went to small and medium enterprises.

Latin America received $1.4 billion during the fiscal year, representing 31% of total dollar volume whiles the Middle East and North Africa saw a growth with more than 40% of global guarantees and commitments totaling more than $700 million.

The Global Trade Finance Program has issued more than 9,600 guarantees to support trade-finance transactions in emerging markets with a median value of $273,934 without a single loss since its inception in 2005, it said.

By Ekow Quandzie