International Finance Corporation invested a total of $14.2 billion in Africa in the 2024 fiscal year, its largest-ever commitment to the continent and up 23 per cent from the previous fiscal year.
The investment supported Africa’s clean energy, manufacturing, digital connectivity, small business, trade, agriculture, and other vital sectors in fiscal year 2024 with record financing and broad advisory support that is helping strengthen markets and create jobs, including in many of the continent’s fragile and most-in-need countries.
“Africa is again on a stronger growth trajectory after several challenging years and IFC is increasing its support for the continent’s private sector, delivering solutions to clients ranging from small start-ups seeking seed funding to large companies looking to expand into new markets,” Sergio Pimenta, IFC’s Vice President for Africa said.
IFC supported private sector development in 45 countries in Africa between July 1, 2023, and June 30, 2024. 30 of which were classified as low-income and/or fragile and conflict-affected situations (FCS), where the need for investment and market support is generally the greatest.
“IFC’s portfolio in Nigeria is the second highest in Africa behind South Africa, and we have about $2.13 billion exposure across agribusiness, healthcare, manufacturing, infrastructure and financial services,” Alexandra Celestin, IFC’s FIG Regional Industry Manager for Central Africa and Anglophone West Africa, told BusinessDay in an interview.
Celestin said that since 2020, the IFC has committed and disbursed over $600 million of senior loans to the financial institutions in Nigeria to enable them to support SMEs with working capital facilities.
“And we’ve provided risk-sharing products to financial institutions to encourage them to lend to underfunded business segments, SMEs, women, entrepreneurs, agribusinesses,” she said.
Of the total invested amount in Africa, $8.5 billion was put into long- and short-term financing from its own account and mobilized $5.7 billion from partner investors.
A total of $3.9 billion was invested in trade financing, $1.6 billion to help smaller businesses grow, $1.1 billion to boost digital connectivity, and $1.9 billion for climate change mitigation and adaptation, including in clean energy and green building projects.
About 41 per cent of IFC’s account financing was dedicated to addressing climate change, 50 per cent to supporting projects with a gender lens, and 21 per cent to low-income countries and FCS.
Pimenta said that the organisation’s reach across the continent, and record investment last fiscal year, reflects its commitment to mobilizing private sector solutions for sustainable development, especially in Africa’s most challenging markets.”
To further drive more private sector investment on the continent, IFC is co-hosting the Africa Financial Industry Summit (AFIS) in Morocco on December 9-10, expected to provide a platform for stakeholder collaboration on solutions that can strengthen economic growth and development on the continent.
Nigeria is expected to have strong representation at the summit, enhancing the country’s position to attract investments and partnerships that align with its economic goals.
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