IFC annual investments surpass $2 billion in Africa

Microfinance Focus, Sep 1, 2010: International Finance Corporation (IFC), the financial arm of World Bank increased its investments in Sub-Saharan Africa to $2.4 billion during the fiscal year 2010 from $1.8 billion a year earlier. It was the first time IFC’s annual investments surpassed $2.0 billion in the region. IFC mobilized an additional $1.1 billion from other investors and approved 40 new Advisory Services projects during FY10.

Thierry Tanoh, IFC Vice President for Latin America and the Caribbean, Sub-Saharan Africa, and Western Europe, said, “Private businesses that are delivering services and creating employment and other opportunities are changing lives for the better in Africa. Through another record year, IFC is demonstrating the enormous private investment potential in Africa and the continent’s readiness to attract more.”

In support of increased development impact in the world’s poorest countries, IFC dedicated nearly $400 million in financing in Africa to projects that strengthen micro-, small and medium enterprises. Following the global financial crisis, IFC provided significant support for trade finance to domestic and international banks. More than $68 million went toward lessening the effects of climate change on the continent.

IFC managed 168 regional Advisory Services projects in Africa, supporting increased access to finance, sustainable business practices, and improved investment climates. Seventy percent of the $248 million in Advisory Services projects under management were dedicated to the region’s poorest countries, also known as IDA countries.

IFC Asset Management Company, during its first year of operation, supported $140 million in Sub-Sahara African investments in manufacturing and financial services, investing alongside IFC. IFC AMC, a wholly-owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns and positive development impact in countries where it invests.

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