IFC joins $15 Billion Africa Support Package
The World Bank Group, including IFC, has joined with six other
international financial and development institutions to provide at least
$15 billion in financial support to Africa over the next two to three
years to prevent the global economic crisis from reversing decades of
progress, growth, and investment in the region.
The Joint Action Plan for Africa, announced in May at the African
Development Bank’s annual meetings in Dakar, Senegal, recognizes that
pooling resources and expertise will enable governments and institutions
to more effectively help the region deal with the global economic
slowdown. It follows similar coordinated initiatives announced recently
in Central Europe and Latin America.
IFC Vice President Thierry Tanoh said, “As part of the World Bank Group,
IFC will work hard with the partners in this initiative to limit the
impact of the global economic crisis on the lives of Africans,
especially the most vulnerable. Partnerships such as this help us
leverage our resources to be more flexible and have a larger impact, and
IFC is committed to ensuring that these initiatives are implemented
quickly and effectively.”
IFC’s contribution will consist of at least $1 billion. It will consist of programs to:
Facilitate trade through the Global Trade Finance Program and Global Trade Liquidity Program
Strengthen the capital base of banks using the IFC Recapitalization Fund
Improve infrastructure by increasing investment in the sector through the Infrastructure Crisis Facility
Increase microfinance lendingPromote agribusiness companies
IFC is already moving ahead with implementing its contribution to the
plan. Standard Bank recently became the first African bank to sign an
agreement to receive funds under the Global Trade Liquidity Program.
Microfinance lending in Africa is also being quickly scaled up, and IFC
expects to announce the first African bank to receive funds from the
bank recapitalization fund in the first quarter of FY10.
To round out the World Bank Group's contribution, the International Bank
for Reconstruction and Development will front-load and fast-track its
IDA commitments and increase access to funds for non-IDA countries,
accelerate fund disbursements, and launch a concessional window to
finance high priority infrastructure.
The World Bank Group's Multilateral Investment Guarantee Agency (MIGA)
will provide up to $2 billion of investment guarantees to prioritize
investor demand for infrastructure investment, small and medium
enterprises, and the financial sector, including banks and microfinance
Institutions participating in the joint action plan are the African
Development Bank, the Agence Française de Développement Group, the
Development Bank of Southern Africa, the European Investment Bank, the
German Federal Ministry for Economic Development and Cooperation (BMZ)
through the KfW Bankengruppe, the Islamic Development Bank Group, and
the World Bank Group.
For more information contact:
Johannesburg, South Africa
Tel: +27 11 731 3179