Maputo, Mozambique, June 27, 2024 – To support trade flows to and from Mozambique and to strengthen the country's financial sector, IFC today announced the agreement of a new trade finance guarantee facility to First Capital Bank Moçambique under the Global Trade Finance Program.
The facility, which First Capital Bank Moçambique will access by joining IFC's Global Trade Finance Program, will provide payment risk cover for trade-related transactions extended by First Capital Bank Moçambique to their clients, including micro-, small-, and medium-sized enterprises in Mozambique's trade and agricultural sectors. This new engagement is supported by IFC's Africa Trade and Supply Chain Recovery Initiative (ATRI), an IFC effort aimed at developing trade in Africa and reducing its reliance on imports through financial support and advice around best practices in trade finance.
The facility will help boost Mozambique's exports and imports, supporting economic activity and the delivery of goods and services. The guarantees will be transaction-specific and could take the form of a variety of underlying instruments, including letters of credit, trade-related promissory notes, bills of exchange, bid and performance bonds, and advance payment guarantees.
By joining IFC's Global Trade Finance Program, First Capital Bank Moçambique will be able to engage with more than 300 other international correspondent banks, further supporting its trade transactions. IFC's support for First Capital Bank Moçambique's trade lines will also enable the bank to grow its overall trade finance business, strengthening competition in the sector.
"On behalf of First Capital Bank Moçambique I would like to thank IFC for the trust placed in us," said First Capital Bank Moçambique's CEO, João Rodrigues. "Trade Finance is one of our most important lines of business and the new facility provided by IFC will be pivotal to enhancing our growth in this segment. We look forward to a fruitful partnership."
"Trade finance is an essential ingredient supporting trade flows and economic activity," said Mehita Fanny, IFC country manager for Mozambique. "IFC's partnership with First Capital Bank Moçambique will make it easier for businesses in Mozambique to import and export essential goods, providing a boost to business growth and job creation."
This project aligns with the World Bank Group's strategy to increase access to finance in Mozambique's private sector as an important way of unlocking economic growth.
To date, IFC has issued guarantees for over $100 billion trade related transactions globally under the Global Trade Finance Program umbrella, with a notable portion dedicated to Africa. In the 2023 fiscal year alone, IFC extended $9.1 billion in guarantees globally, with $3.5 billion allocated to Africa.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About First Capital Bank in Moçambique
First Capital Bank, SA is part of FMBcapital Holdings PLC (FMBCH Group) which has a strong regional presence, providing banking and financial solutions through its operating subsidiaries in five Southern African Development Community (SADC) markets -- Botswana, Malawi, Mozambique, Zambia and Zimbabwe. First Capital Bank, SA began operating in Mozambique in July 2013, when it took over the operations of 8,000 customers. For more information, visit www.firstcapitalbank.co.mz
About FMBcapital Holdings
FMBcapital Holdings Plc provides banking and financial solutions through its operating subsidiaries in five SADC markets (Botswana, Malawi, Mozambique, Zambia and Zimbabwe) with an Information Technology and Operations Shared Services Center in Mauritius. The Group has a total asset base of over 1.5 billion dollars, employs over 1,900 staff and serves the financial needs of customers across Africa. For more information, visit https://fmbcapitalgroup.com/
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