The proposed facility would be structured under IFC’s Global Trade Finance Program (GTFP), which provides guarantees to international banks to cover payment risks on trade transactions issued by banks in emerging markets.
If approved, IFC would provide an unfunded guarantee line of up to $30 million covering trade finance instruments with tenors of up to 360 days.
The arrangement allows international confirming banks to support letters of credit issued by BFA, helping Angolan companies import goods or export products while reducing the perceived risk for foreign lenders.
The guarantee mechanism means IFC would not disburse funds directly but would step in if BFA fails to meet its payment obligations.
By backing transactions with its high credit rating, the multilateral lender helps local banks access international trade finance lines that might otherwise be difficult to secure.
The initiative forms part of IFC’s broader efforts to expand access to trade finance in emerging markets, particularly for corporates and small and medium-sized enterprises that depend on cross-border transactions.
Headquartered in Luanda, BFA is the second-largest bank in Angola by deposits and loans. As of mid-2025, the lender served more than 3.4 million customers through a nationwide network of 160 branches.
The bank’s main shareholders include telecom operator Unitel with a 36.9% stake and Portugal’s Banco BPI, which holds 33.35% and is itself owned by Spain’s CaixaBank.
In September 2025, BFA listed 29.75% of its shares on the Angolan stock market, attracting more than 8,000 investors in what was seen as a rare public offering in the country’s relatively small capital market.
Trade finance remains constrained across much of Africa. Multilateral institutions estimate the continent’s trade finance gap at more than $100 billion, driven by limited access to dollar liquidity, stricter compliance requirements and difficulties international banks face in assessing credit risks.
In Angola, the problem has been compounded by limited direct correspondent banking links with U.S. lenders since Deutsche Bank stopped clearing U.S. dollar transactions for Angolan banks in 2016. Local lenders have since relied on European intermediaries to process international payments, increasing costs.
The situation began to improve toward the end of 2025 when JPMorgan resumed U.S. dollar clearing services for the country, restoring the processing and settlement of dollar-denominated transactions that had been disrupted for nearly a decade.
Analysts say facilities such as the IFC guarantee could help Angolan banks rebuild correspondent banking relationships and expand access to global trade finance channels as the country works to strengthen its financial system and reconnect more fully with international markets.
