Financial Institutions  Priorities  Global Trade

Global Trade

Traders work on the floor of the Ghana Stock Exchange in Accra, Ghana. © Jonathan Ernst / World Bank

Global trade is essential for growth and a key driver of integration and opportunities for local enterprises. Financing trade is fundamental to the movement of goods at all stages of the supply chain and can have a strong development impact on developing countries.

IFC’s Trade and Commodity Finance programs offer guarantees, risk-sharing facilities, loans and other structured products to support trade in emerging markets. Through these various products, IFC has supported more than 400 financial institutions and thousands of underlying companies in more than 90 countries across all regions of the globe. 

To date, IFC’s Trade and Commodity Finance unit has supported over $145 billion in global trade, all of which is directly linked to the movement of specific goods across emerging market borders. IFC’s Trade and Commodity Finance unit has supported $57 billion in trade in the world's poorest countries, those eligible to borrow from the World Bank's International Development Association (IDA). It has also enabled $4.6 billion in trade amid challenging conditions in fragile and conflict-affected states.

 

Trade and Commodity Finance at IFC

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Global Trade Finance Program (GTFP)

Provides unfunded guarantees to take risk on local issuing banks and shares it with international or regional banks to encourage the availability of trade finance, particularly in IDA markets.


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Global Trade Liquidity Program (GTLP)

Provides funded or unfunded risk sharing facilities to support trade finance in emerging markets by partnering with international banks.


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Global Trade Supplier Finance (GTSF)

Provides short-term financing or guarantees to support emerging market suppliers to finance their sales to pre-approved buyers under revolving uncommitted buyer credit lines.


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Critical Commodities Finance Program (CCFP)

Provides funded or unfunded risk sharing facilities on FI or corporate exposure for trade in agricultural commodities or energy imports, primarily in IDA countries.


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Structured Trade and Commodity Finance (STCF)

Supports large cross-border commodity trade focused on strategic commodities (food and energy) using collateral management to support lending at all stages of the supply chain.


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Global Warehouse Finance Program (GWFP)

Provides working capital financing by allowing agricultural players to use agricultural commodities as collateral.


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Working Capital Solutions (WCS)

Provides short-term loans to emerging market banks by injecting USD liquidity to support trade primarily for SMEs in low-income countries.


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Development Impact

Trade finance is a priority for IFC because we have seen the high development impact it can have on developing countries. IFC is playing a leadership role in supporting and protecting global trade flows to the world’s poorest countries at a time when many banks are pulling out of trade finance. IFC is delivering a coordinated set of programs that support global trade by helping stabilize and foster trade and commodity finance. In particular, IFC focuses on supporting trade in areas such as agribusiness, SMEs, and energy, because these have the greatest impact to meet the World Bank Group’s twin goals of eradicating poverty and creating shared prosperity.

To date, IFC’s Trade and Commodity Finance unit has supported over $145 billion in global trade, of which $57 billion has been in IDA countries, all of which is directly linked to the movement of specific goods across emerging market borders. IFC has enabled $4.6 billion in trade amid challenging conditions in fragile and conflict-affected states and has supported trade and investments in 37 of the 40 fragile and conflict-affected states.