The International Finance Corporation, IFC and the China-World Bank Partnership Facility announced efforts to increase cross-border partnerships that will bring global financing and expertise to Africa, to help the continent close annual infrastructure gaps of $4.5bn, create jobs, and accelerate economic growth.
In a build up to the efforts, the IFC and the partnership facility hosted, on March 26, 2018, a meeting of senior business leaders from Africa, Asia, and North Africa to discuss private sector development opportunities in Africa’s infrastructure, transport, health, education, and other sectors.
The meeting was part of the 2018 Africa CEO Forum, an annual gathering of influential African and international CEOs, bankers, and investors.
Bola Bamidele, Africa Lead, Corporate Finance Services, IFC, said in a statement obtained by BusinessDay that, “Cross-border partnerships allow African businesses to gain access to global capital and technical expertise, creating synergies for successful, long-term private sector projects that also deliver substantial development impact. Over nearly six decades, IFC itself has invested more than $25 billion in African businesses and financial institutions, and our current portfolio exceeds $5 billion.”
Despite increasingly stronger regional economic growth and investment, Africa’s investment needs remain formidable.
In the statement,the World Bank estimates that more than $9 billion is needed annually to build the infrastructure Africa needs to sustain its growth. Only about half of that level is achieved each year. The gap is too great for governments to bear alone and underscores the importance of partnerships for development.
Benson Ayodele Cole, the CEO of Echo Scan Services Limited, an IFC client, testifying on the role that IFC’s financial advisory team played in achieving his vision for the medical diagnostics service he is developing in Nigeria, said: “IFC was key in structuring the cross-border partnership with my company Echo-Scan Diagnostic. Through this partnership two Egyptian power houses now share in my vision and invested in Echo-Scan, setting the ground for delivering much needed medical diagnostic services in my country”. IFC also participated in the transaction as a counterpart investor.
IFC plays a critical role in forging such partnerships, providing advisory support to global clients to help them better understand and navigate African markets, and to African businesses to help them identify viable partners and worthy projects. IFC engages throughout the breadth of a project, from helping assess and select potential markets, to identifying investors and partners, supporting valuation, negotiations, and transactions through to closure.
The China World Bank Partnership Facility (CWPF) is atrust fund that aims to enhance cooperation between China and the World Bank Group, and leverages financial and knowledge-based resources to help developing countries achieve inclusive and sustainable development. A component of the CPWF focuses on mobilizing Chinese private sector investment as a driver of economic development in Africa and may be used for project scoping and development; technical assistance, and advising on structuring of projects.
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