IFC Funding For Africa Hits Record Levels In 2022/23
The IFC invested US$11.5 billion across 40 countries.
The IFC provided US$11.5 billion in financing across 40 countries in Africa during the fiscal year 2022/23, its largest ever annual commitment for the continent.
The investments are intended to help accelerate Africa’s energy transition, develop greener manufacturing, increase intra-Africa trade, strengthen smaller businesses, and boost local food production.
"At difficult times like these, when the shockwaves of multiple crises are shaking economies worldwide, we are stepping up our work to support a resilient, inclusive, and greener private sector that is helping provide infrastructure and digital solutions while also tackling food security and climate change," said Sérgio Pimenta, IFC vice president for Africa.
"Catalysing increased private sector innovation and financing for addressing climate change, bridging gender gaps, and empowering the next generation of startup leaders has been at the forefront of our work this past year and will continue to drive our engagements as we work with partners to create jobs and opportunities for more people."
Between July 2022 and June 2023, the IFC made US$11.5 billion in investments, including US$1.12 billion in trade financing, US$876 million for the green energy transition, and US$1.98 billion to help smaller businesses expand and create jobs. It also provided US$1.76 billion to boost digital connectivity, with investments in telecom towers, broadband and mobile internet growth.
Of the US$11.5 billion, the IFC provided US$3.5 billion in short-term financing and mobilised US$3.1 billion, with 40% of IFC's own account financing dedicated to addressing climate change and 48% going to low-income and fragile and conflict-affected states.
The IFC’s support for climate-related projects included US$1.1 billion to the UAE’s AMEA Power to build Egypt's largest wind and solar plants, a €242 million financing package for Senegal's Sococim Industries to boost low-carbon cement production and a similar US$500 million investment in BUA Cement in Nigeria. A further US$1.2 billion in financing was provided to support financial institutions to expand their climate and sustainability lending.
To strengthen digital connectivity, the IFC announced US$1.3 billion in equity investments, loans, and guarantees to support Safaricom Ethiopia's greenfield telecommunications network across Ethiopia. During the financial year, IFC's Africa Fragility Initiative (AFI) supported 18 advisory projects focused on developing private sector capacity in the most nascent and fragile markets in Africa.
In addition to its investments in Africa, IFC provided advisory and upstream services with a portfolio of more than US$445 million across 275 projects aimed at improving the investment climate and helping Africa create markets and attract investment. For example, the IFC provided the governments of Cote d'Ivoire and Egypt support developing public-private partnerships to unlock private investment in infrastructure.
Photo: IFC HQ (© Jhvephotos | Dreamstime)