Citi and partners to provide $100m facility for African SMEs

The UK’s development finance institution (DFI) and impact investor, British International Investment (BII), has signed a $100 million risk-sharing supply chain finance facility with Citi to offer capital for small and medium firms in Africa.

SME suppliers and enterprises that are underserved or excluded will be targeted by the facility. It will increase Citi’s annual supply chain finance volumes in Africa by up to $400 million, thanks to increased capital assistance that will help businesses better manage cash flow and onboard new suppliers, ensuring the uninterrupted flow of goods and services.

This will assist local firms in expanding their reach and ensuring productive and inclusive economic possibilities for a variety of groups and communities. The new facility will help Citi expand its supply chain finance product in Africa by providing systemic liquidity.

Citi will be able to expand supply chain finance services to existing customers as well as provide them with new ones thanks to the facility. It emphasised that these facilities provide much-needed working capital to supply chains by allowing Citi’s corporate clients’ suppliers to be paid early and at a favourable rate of finance.