Absa partners with IFC to launch $50-million trade facility for African farmers

Timilehin Adejumobi -
Key Points
  • Absa Group and IFC have launched a $50-million trade finance facility to boost agricultural exports across West and East Africa.
  • The facility will support 150,000 smallholder farmers by enhancing their market access for commodities like cashew nuts and sesame seeds.
  • Absa CEO Arrie Rautenbach, who led major growth initiatives, will retire in April 2025 after 27 years at the bank.

Absa Group, a Johannesburg-based diversified financial services provider led by South African banking executive Arrie Rautenbach, has partnered with International Finance Corporation (IFC), a member of the World Bank Group, to launch a $50-million trade finance facility aimed at supporting agricultural exports across West and East Africa. 

The initiative will provide working capital to Singapore-based Valency International Pte Ltd, a key player in Africa’s agricultural commodities sector, to facilitate the purchase of commodities such as cashew nuts, sesame seeds, shea nuts, ginger, and soya beans.

This announcement follows a recent collaboration between Absa and IFC, which resulted in a $60 million trade finance facility for Volcafe, a leading global green coffee merchant.

Absa, IFC to empower 150,000 smallholder farmers

The commodities will be sourced from an estimated 150,000 smallholder farmers and local traders across Cote d'Ivoire, Nigeria, Ghana, and Tanzania. Smallholder farmers, who manage 80 percent of Africa’s farmland, often face challenges accessing finance. This facility aims to close that gap and enhance their market access.

“IFC and Valency share our strategic vision of supporting Africa's growth and development,” said Tshimbi Ntuli, head of structured trade and commodity finance at Absa. “We believe that partnerships like these are crucial for driving the continent’s economic transformation.”

Absa and IFC will each contribute $25 million to the trade facility. Valency will use the funds to provide cooperatives and buying agents with working capital, allowing them to source commodities directly from farmers. The investment forms part of IFC’s broader $1 billion Africa Trade and Supply Chain Recovery Initiative, aimed at strengthening trade networks across the region.

Sérgio Pimenta, IFC’s Vice President for Africa, highlighted the partnership’s potential for job creation. “This collaboration will help farmers across Africa better integrate into global markets,” Pimenta said. 

Absa’s robust financials facilitate leadership transition

Absa, with over 12 million customers and a vast branch network, has thrived under CEO Arrie Rautenbach's leadership since 2022.

Rautenbach, a veteran of South Africa's financial sector, will retire in April 2025 after 27 years at the bank. In fiscal 2023, Absa generated more than $5 billion in revenue.

Rautenbach’s tenure saw significant milestones, including the acquisition of HSBC's Mauritius units and a partnership with Renault South Africa.

Jason Russon is set to serve as interim CEO from Oct. 15, as the bank continues its push for Pan-African expansion.