Yemisi Izuora
The International Finance Corporation (IFC), and Spanish banking giant Santander have unveiled a risk-sharing facility designed to expand access to financing for suppliers and small and medium-sized enterprises (SMEs) in emerging markets.
The facility is expected to provide coverage for up to $500 million in global supply chain finance assets originated by Banco Santander, a commercial bank founded in 1857.
The programme would support nearly $1.5 billion in supply chain financing transactions over the next three years. By leveraging the credit strength of large corporate buyers rather than relying solely on the financial position of individual suppliers, the facility will make it easier for SMEs to access working capital.
In practical terms, the initiative will allow small businesses supplying large companies to receive payments more quickly, helping them manage day-to-day expenses, maintain operations, and invest in growth. According to IFC and Santander, the program will strengthen local economic activity, support jobs, and improve the ability of businesses to withstand economic shocks.
“Supply chain finance is a critical enabler of global trade and commerce, ensuring that liquidity reaches key businesses and intermediaries precisely when markets face heightened volatility,” said Nathalie Louat, Global Director of Trade and Supply Chain Finance at IFC.
SMEs play a central role in economic growth and job creation across emerging markets. Yet many continue to struggle to secure bank financing because they lack sufficient collateral or fail to meet lending requirements.
According to IFC, SMEs in emerging economies face an estimated financing gap of $5.7 trillion. That figure rises to about $8 trillion when businesses operating in the informal economy are included. The new facility is intended to help narrow that gap by expanding access to trade and supply chain finance, an area increasingly viewed as a key tool for supporting small businesses and strengthening economic resilience in developing markets.