International Finance Corporation : a record year for sifinancing in Africa
Record funding for real impacts in key sectors of the African economy. The International Financial Corporation (Sfi) is establishing itself as a backbone of the continent's economies. A useful presence in several segments.
By the editorial staff
The IFC has invested US$11.5 billion in a total of 40 African countries. Which represents the highest level of commitment in a single year for the continent, indicates the institution’s annual report. In detail, $1.98 billion has been allocated to support SMEs and create jobs, $1.76 billion to strengthen digital connectivity, with investments in telecom towers and the growth of broadband technologies and mobile internet. , 1.12 billion dollars for financing trade activities, 876 million for the energy and ecological transition of the continent… “A record level for the 2023 fiscal year”, underlines the document.
In total, the IFC has committed more than $43 billion in investments, the largest volume in its history
The IFC has invested US$11.5 billion in a total of 40 African countries. Which represents the highest level of commitment in a single year for the continent, indicates the institution’s annual report. In detail, $1.98 billion has been allocated to support SMEs and create jobs, $1.76 billion to strengthen digital connectivity, with investments in telecom towers and the growth of broadband technologies and mobile internet. , 1.12 billion dollars for financing trade activities, 876 million for the energy and ecological transition of the continent… “A record level for the 2023 fiscal year”, underlines the document.
We have mobilized more than $15 billion from external partners, another record
On the ground, the impact of the financing granted by the IFC is visible. In Egypt, for example, the institution helped provide clean energy to more than a million people thanks to support for the construction of the largest solar power plant and the largest wind farm in the world. country. To promote access to technologies in Ethiopia, the IFC supported the construction and operation of the new telecommunications network. This has made the internet more affordable and mobile connectivity more reliable. In Cameroon and Madagascar, as part of the “Base of the Pyramid” program, IFC support has enabled financial service providers to offer financing to micro, small and medium-sized enterprises… In the Democratic Republic of Congo where nearly 70 million people are without electricity, the IFC has injected $10 million into Nuru, a pioneer of decentralized energy solutions in the country. This support, along with that of other partners, made it possible to launch work on new solar projects which, ultimately, will impact around 28,000 households and businesses.
This year’s achievements also reflect the way in which the IFC is changing
For Makhtar Diop, Director General of the institution, 2023 was marked by incessant challenges, such as the sudden slowdown in global growth, the worsening of extreme poverty, the intensification of the climate crisis and the appearance of new conflicts. Faced with these concomitant crises which continued to intensify, he said, the response was prompt and far-reaching. “We understood that the status quo would not be enough and raised our ambitions to seize the moment. And in fiscal 2023, we delivered results. In total, the IFC has committed more than $43 billion in investments, the largest volume in its history. Climate commitments have reached an unprecedented level, exceeding $14 billion. We have exceeded our gender equality targets. And we have mobilized more than $15 billion from external partners, another record,” he said. According to him, these figures are impressive. But in reality, they represent jobs created, access for women entrepreneurs to financial services, significant reductions in greenhouse gas emissions, and much more. “This year’s achievements also reflect the way in which the IFC is changing,” he added.
800 million dollars to be mobilized by 2030
And for the years to come, the institution aims to go even further. Aware of the place of agriculture in economies and the problems of access to certain inputs, the IFC launched the attack. In collaboration with the Cherifian Phosphate Office (OCP), it has set up a new agri-finance platform with a view to mobilizing $800 million by 2030 to support food production and distribution systems in Africa . For IFC Director General Makhtar Diop, “both parties will commit resources to develop the platform, while attracting like-minded partners and potential investors to this important and timely project.” Ultimately, underlines the press release, this instrument will strengthen 30 priority agricultural value chains in different countries on the African continent through improving access to credit and implementing training for the benefit of operators. A major initiative for an African agricultural sector which accounts for 20% of the Gross Domestic Product (GDP) and employs more than 60% of the population.
To find out more: https://www.ifc.org/
