First Capital Bank Mozambique benefit as of June 2024 of a new Trade Finance facility announced by IFC in Maputo, with the aim of supporting trade operations to and from Mozambique and strengthening the country’s financial sector.

The facility, which First Capital Bank Mozambique has access by joining IFC’s Trade Finance Program, provides payment risk cover for trade-related transactions extended by First Capital Bank Mozambique to its clients and companies, including small and medium-sized companies operating in the trade and agriculture sectors in Mozambique.

This new facility is supported be IFC’s Africa Trade and Supply Chain Recovery Initiative (ATRI), an IFC effort aimed at developing trade in Africa and reducing its reliance on imports through financial support and advice around best practices in trade finance.

The facility will help boost Mozambique’s exports and imports, supporting economic activity and the delivery of goods and services. The guarantees will be transaction-specific and could take the form of a variety of underlying instruments, including letters of credit, trade-related promissory notes, bills of exchange, bid and performance bonds, and advance payment guarantees.