IFC is expanding its developmental reach in Africa, investing more resources and working more closely with partners to support the private sector so that more Africans can build a better future.
IFC committed $1.82 billion worth of new investments across 30 countries in Africa in the fiscal year ended June, its largest volume in any single year since its founding in 1956 and an increase of 32 percent from a year earlier.
The jump came as IFC rapidly increased activities to alleviate the impact of the global financial crisis on Africa’s poorest regions.
IFC also delivered $26.1 million worth of advisory services, up from $18.6 million a year ago, as it expanded activities to have more impact in countries affected by conflict and where the private sector is at the very early stages of development.
“IFC is increasing its activities where it is needed the most, building a base for sustainable economic growth and increasing opportunities for people to improve their lives,” says Jean Philippe Prosper, IFC Director for Eastern and Southern Africa. “IFC stepped up financing and advisory services amid the turmoil in global financial markets to sustain investment flows to Africa and alleviate the impact of the global economic slowdown on the Africa’s most vulnerable.”
Addressing the Global Crisis
IFC last year teamed up with other international financial institutions to mobilize at least $15 billion over the next two to three years to lessen the impact of the global financial turmoil on Africa.
IFC will contribute at least $1 billion to promote trade, strengthen the capital base of banks and promote microfinance lending, and increase lending for infrastructure projects and other real sectors of the economy experiencing a shortfall in liquidity.
IFC continued to extend its regional reach in Africa to countries where it has traditionally been less active. The Corporation last year committed its first investment in Sao Tome and Principe, which became an IFC member state in October 2008, and opened new offices in the Central African Republic and Ethiopia.
“Reaching Africa’s smaller markets is a top priority for IFC,” said Yolande Duhem, IFC Director for West and Central Africa. IFC increased its financing in that subregion by 58 percent. “Through innovative financing, increased advisory services, and working together with partners who share our commitment to African development, we have been able to finance more businesses in West and Central Africa.”
Three-Part Strategy
IFC’s strategy in Africa is based on three main components: improving the investment climate, enhancing support to small and medium enterprises, and developing new projects to support investments. IFC is also focusing on building infrastructure, advancing health care, developing agribusiness, reforming the investment climate, and promoting the recovery of countries affected by conflict.
IFC committed investments in the following African countries last year: Angola, Benin, Burkina Faso, Burundi, Cameroon, Chad, Cote d’Ivoire, Democratic Republic of Congo, Ethiopia, Gambia, Ghana, Kenya, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, Sao Tome and Principe, South Africa, Tanzania, Togo, Uganda, and Zambia.
For more information contact:
Houtan Bassiri
Communications Officer
Nairobi, Kenya
Tel: +254 20 275 9436
Email: hbassiri@ifc.org
