Standard Bank Group Partners with IFC to Boost Local Currency Lending in Africa

The Standard Bank Group has announced a strategic partnership with the International Finance Corporation (IFC) aimed at expanding local currency lending and accelerating development projects across Africa. This collaboration will see Standard Bank and IFC working together on cross-currency swaps and derivatives, leveraging each other’s market expertise to enhance access to local currency financing for businesses, particularly in countries where currency liquidity poses a challenge.

Head of Global Markets Africa Regions at Standard Bank Group, Kayode Solola, highlighted the significance of the agreement: “Driven by positive market reforms and attractive returns, global investors have shifted their gaze to Africa. There is also growing interest in sub-Saharan countries with investors recognizing the continent’s potential. The agreement with IFC further entrenches Standard Bank’s ability to make a real difference in the countries in which we operate, allowing deeper participation of local stakeholders in their own economy.”

Head of Treasury Client Solutions EMEA at IFC, Martin Habel, emphasized the impact of local currency financing on economic growth: “Enhancing access to local currency financing in Africa is essential for business growth, job creation, and the development of local capital markets. This agreement supports IFC’s strategy to expand funding and hedging solutions, facilitating access to local currency financing and reducing reliance on foreign currency-denominated debt in African countries.”

Standard Bank’s selection as a partner for this initiative is attributed to its long-standing relationship with IFC and a proven track record in both local and foreign currency financing solutions. As Africa’s largest bank, with operations in over 20 countries, Standard Bank is uniquely positioned to tap into local currency markets. Known for its leadership in Forex trading across the continent, Standard Bank is the preferred choice for investors seeking local currency exposure in emerging markets, effectively mitigating currency risks throughout Africa.

IFC has been a pioneer in local currency financing, offering a range of products to address currency mismatch risks, including loans, bonds, structured products, and risk-management solutions. In fiscal year 2024, IFC achieved a record $5.8 billion in local currency financing through 118 commitments in 34 currencies.

This new agreement builds on the long-standing partnership between Standard Bank and IFC, which has included significant collaborations such as:

– Anchoring Standard Bank’s first green bond in 2020.

– Increasing climate and affordable housing finance in South Africa through multiple strategic transactions, including a $250 million sustainable term loan and a $300 million sustainable