IFC funds 45 African countries with $14.2 bln in FY2024

Ahram Online , Wednesday 30 Oct 2024

The International Finance Corporation (IFC), the World Bank Group's financial arm, invested $14.2 billion in 45 African countries in FY2024, according to an announcement issued by IFC on Wednesday.

IFC
Photo: FC official website

 

Of these 45 African countries, 30 are classified as low-income and/or fragile and conflict-affected situations (FCS).

This marks the most significant commitment to the continent to date, representing a 23 percent increase compared to FY2023.

These funds supported various sectors, including clean energy, manufacturing, digital connectivity, small businesses, agriculture, and other vital industries.

From this total, IFC secured $8.5 billion in long- and short-term financing from its resources, in addition to $5.7 billion from partner investors. The investments included $3.9 billion for trade financing, $1.6 billion to support small businesses, $1.1 billion to enhance digital connectivity, and $1.9 billion for climate change mitigation and adaptation, including clean energy and green building projects.

In FY2024, IFC's investments supported 130 projects across various sectors. Among these initiatives was a sustainability-linked loan to help Cabo Verde modernize and reduce emissions at its seven airports.

IFC also invested nearly $200 million to strengthen food security, access to finance, and sustainable agriculture and construction sectors in Morocco and beyond.

Additionally, IFC partnered with Côte d'Ivoire's Ministry of Health on two public-private partnerships to enhance laboratory and imaging services in 14 public hospitals.

A $3.4 million equity investment was also made in ANKA, an online platform connecting women-led artisanal businesses with global buyers, to strengthen Africa's creative industries and online retail sector.

IFC's support for fragile and conflict-affected regions included a risk-sharing facility with Deutsche Bank of up to 215 million euros to boost trade in some of the continent’s most challenging markets.

It also provided a $100 million financing package to renewable energy company Release by Scatec to help meet rising electricity demands in Chad, Cameroon, and other countries.

Being the largest global development institution focused on the private sector in emerging markets, IFC operates in over 100 countries to create new markets and opportunities.

In FY2024, IFC allocated a record $56 billion to private companies and financial institutions in developing countries to leverage private sector solutions for creating a poverty-free world.

In 2023, IFC invested $25 million in an Africa-focused private equity fund to support women entrepreneurs.

In June, IFC was appointed as a strategic advisor for the Egyptian government's Initial Public Offering (IPO), tasked with providing advisory services for Egypt's privatization programme.

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