Financial markets development is essential to successful and sustainable economic development in low- and middle-income countries around the world: it is a critical part of the effort to reduce poverty and improve people's lives. Improving access to finance and building financial markets is a focus of IFC's strategy to strengthen the private sector in Sub-Saharan Africa
IFC supports projects in numerous financial sectors, from helping to develop capital markets to insuring that the poorest people can find sources of microfinance for their entrepreneurial businesses. In FY07, IFC invested $507.71 million in Sub-Saharan Africa in projects in or related to financial markets, approximately 37 percent of our total commitment in the region.
Focus on Africa
In Sub-Saharan Africa, IFC focuses on debt, Tier II, equity and quasi-equity investments in financial institutions. Efforts are also aimed at increased funding for sustainable development projects in microfinance and at encouraging investment from one developing nation into another.
A Strong Financial Sector
IFC helps build local financial institutions, develops local equity and debt markets, and introduces new financing instruments. The goal is to develop efficient financial systems that will fuel economic growth in developing countries. We emphasize the "triple bottom line" in all our investments—economic, social, and environmental sustainability.
Advisory services often accompany our financial investments, giving clients the benefit of in-house expertise from seasoned sector specialists. IFC uses consultants familiar with local conditions to provide solutions suited to the unique characteristics of a country. Advisory projects include assistance to banks and specialized financial institutions in improving their ability to provide financial services to micro, small, and medium enterprises.
Promoting sustainability is central to all IFC projects. We develop products that are tailored to our clients' needs by working to identify sustainability opportunities based on business drivers and market conditions. Sustainable finance can support business growth through expanding financial product offerings to existing clients or by providing the resources to serve the needs of new market segments. Our business solutions not only establish our clients as market leaders, but also protect from downside regulatory, reputational and operational risks.
Project Examples:
Developing Financial Markets
Supporting Smaller Businesses
Broadening the Reach of Banks
Promoting Trade
For more information contact:
Houtan Bassiri
Communications Officer
Johannesburg, South Africa
Tel: +27-11-731-3179
Email: hbassiri@ifc.org
