Standard Bank Group has entered into a transformative agreement with the International Finance Corporation (IFC) to boost local currency lending and accelerate development projects across Africa.
This collaboration focuses on cross-currency swaps and derivatives, addressing the liquidity challenges of local currencies and ensuring businesses have enhanced access to vital financing.
Kayode Solola, Head of Global Markets Africa Regions at Standard Bank Group, highlighted the significance of this partnership: “Driven by positive market reforms and attractive returns, global investors are increasingly focusing on Africa. The agreement with IFC strengthens our ability to empower local economies and deepen the participation of local stakeholders in their own growth.”
IFC’s Head of Treasury Client Solutions EMEA, Martin Habel, emphasised the agreement’s importance in reducing reliance on foreign currency debt and facilitating business expansion. “Expanding local currency financing is critical for growth, job creation, and developing local capital markets,” he stated. The IFC’s record $5.8 billion in local currency financing in fiscal year 2024 underscores its leadership in addressing currency mismatch risks and supporting sustainable development.
With its extensive presence in over 20 African countries, Standard Bank is uniquely positioned to implement this initiative effectively. The bank’s expertise in Forex trading and strong relationship with IFC further solidify its role as a key driver of Africa’s economic transformation.
This agreement builds on successful past collaborations, including green bonds, affordable housing finance, and sustainable loans, aligning with global sustainability goals and Africa’s development agenda.
Further Africa
