In a statement issued in Nairobi, Kenya on October 30, 2024, the International Finance Corporation (IFC), a member of the World Bank Group and the leading private sector-focused development institution in emerging countries, revealed that during the In FY24, IFC provided a record amount of financing and a wide range of advisory services to strengthen markets and drive job creation in Africa, particularly in many of the continent’s fragile and poorest countries. These investments came, according to the official document, to support essential sectors such as clean energy, manufacturing, digital connectivity, small businesses, trade and agriculture.
The IFC recalled that between 1is July 2023 and June 30, 2024, 45 African countries benefited from its support for private sector development, including 30 low-income states and/or fragile and conflict situations, where support needs to investment and the market are generally the greatest.
The press release informed that in total, IFC investments in Africa amounted to $14.2 billion in FY24, the largest volume of commitments ever made on the continent and an increase of 23% compared to the previous financial year.
According to the same source, of this amount, the IFC committed $8.5 billion in short and long-term financing for its own account and mobilized $5.7 billion from partner investors.
Among these commitments, $3.9 billion was allocated to trade finance, $1.6 billion to support small business development, $1.1 billion to strengthening digital connectivity, and $1.9 billion dollars for climate change mitigation and adaptation, particularly through clean energy and green building projects.
More specifically, approximately 41% of IFC’s proprietary financing was dedicated to combating climate change, 50% to gender-responsive projects, and 21% to low-income or low-income countries. fragile, detailed the text.
“As Africa returns to a more vigorous growth trajectory after several difficult years, IFC is increasing its support to the private sector by offering a range of solutions aimed at both small start-ups seeking seed capital and large companies wishing to conquer new markets. The reach of our activities across the continent and the record investments we made over the last financial year demonstrate our determination to mobilize private sector solutions for sustainable development, particularly in the most challenging markets. of Africa”, underlined, in the press release, Sérgio Pimenta, vice-president of IFC for Africa.
In FY24, IFC investments in Africa supported 130 projects across diverse sectors. Among these operations, there is a loan indexed to sustainability objectives intended to help Cabo Verde modernize its seven airports and reduce their carbon emissions; an investment of nearly $200 million to support food security, access to finance, sustainable agriculture and eco-construction in Morocco and other regions of Africa; an agreement with the Ministry of Health of Côte d’Ivoire on two public-private partnerships aimed at improving laboratory and imaging services in 14 public hospitals in the country; and a $3.4 million equity investment in the ANKA online platform, which connects women’s craft businesses with buyers around the world, helping to strengthen Africa’s creative sector and trade. detail online, detailed the official text.
Who argued that IFC’s support for situations of fragility and conflict in Africa notably gave rise to the establishment of a risk-sharing mechanism with Deutsche Bank, to the tune of 215 million euros, which will boost trade in some of the continent’s most challenging markets, as well as a $100 million funding package for renewable energy company Release by Scatec, which will help meet growing demand electricity in Chad, Cameroon and elsewhere.
IFC’s priority attention to gender equality has notably enabled it to expand collaboration with Goldman Sachs’ 10,000 Women program, which will help create more opportunities for women entrepreneurs in French-speaking Africa.
In addition to its financial commitments in Africa, IFC has provided more than $455 million in advisory and upstream services aimed at strengthening the investment climate, helping businesses reduce gender gaps and women, and to improve their performance in environmental, social and governance matters. “Upstream” activities refer to the preparatory work carried out by IFC to support markets and projects at an early stage and in a proactive manner, the official statement concluded.
Moctar FICUU / VivAfrik
