IFC’s Investment in Private Sector Development in Africa Hits a Record $9.4 Billion
- IFC’s financing across Africa included short-term finance ($3.0 billion) and mobilization ($2.6 billion), with 49 percent of IFC’s account financing going to low-income and fragile and conflict-affected states. During the financial year, IFC also launched the Africa Fragility Initiative (AFI), a five-year program dedicated to supporting private sector-led growth and job creation across 32 African countries affected by fragility and conflict.
The International Finance Corporation (IFC)’s financing in Africa has hit a record $9.4 billion in investments between July 1, 2021, and June 30, 2022 across 36 countries, the largest ever annual commitment for the continent.
The investments include $3 billion in trade financing that is unlocking intra-Africa trade for thousands of small businesses, $2.1 billion that is supporting the continent’s green transition, from increasing access to climate finance to funding renewable energy projects, and $861.7 million that is supporting increased digital connectivity. IFC also provided $603 million in agriculture financing, helping to strengthen food security during a turbulent global economic period.
The financial institution in August 2021 announced that it’s financing in Africa and the Middle East had hit $10.4 Billion with focus on helping thousands of small businesses access finance, connect people and businesses to reliable digital infrastructure, trade and services, and help to meet critical health needs amid the COVID-19 pandemic.
Sérgio Pimenta, IFC Vice President for Africa said, “While the effects of the COVID-19 crisis persist, new challenges are also looming from rising global inflation. A strong and engaged private sector is indispensable to helping countries and companies navigate these and other challenges and that’s why we stepped up IFC’s funding and support to help sustain and create jobs, improve basic services and foster growth for small and medium-sized enterprises.”
