| IFC Hits Record Investment, Advisory Volume to Promote Development in Sub-Saharan Africa |
IFC committed a record $5.3 billion to new investments and carried out advisory services projects worth $65 million
in Sub-Saharan Africa in its most recent fiscal year. IFC supported
infrastructure, health, agribusiness and a range of activities in
conflict affected states and helped Africa’s entrepreneurs gain access
to finance.
IFC invested $3.5 billion from its own account, and mobilized $1.8 billion
from other investors. In FY 2013, IFC’s supported projects that
provided loans for 54,000 small and medium businesses, encouraged 13.7
million microfinance clients; and improved health and education for
360,000 people. IFC’s investments in wind power and other renewable
energy reduced 667,000 tons of greenhouse gas emissions.
IFC Advisory Services spending reached $65 million during the most recent fiscal year. Projects were active in 42 countries, with 126 projects, valued at $217 million
over the life of the projects. During fiscal year 2013, advisory
services projects improved access to lighting and education services
for 1.6 million people; generated 27,000 jobs; trained entrepreneurs and
connected farmers to global markets. Three public-private partnership
mandates were successfully closed, helping deliver health services to
360,000 people in Lesotho and Nigeria and power to 75,000 in Liberia.
IFC
and the World Bank's Investment Climate Advisory Services worked with
governments in Sub-Saharan Africa to implement over 50 reforms
that benefited the private sector in 17 different countries. In Uganda,
for example, licensing reforms led to private sector cost savings of $15.5 million.
The 2013 Doing Business report found that of the 50 economies globally
making the most improvement in business regulation for domestic firms
since 2005, one-third were in Sub-Saharan Africa.
IFC’s agribusiness investments in Sub-Saharan Africa reached $600 million
in the 2013 fiscal year. By investing in companies such as the Kenya
Tea Development Agency and the Export Trading Group, IFC created
economic opportunity for 263,000 farmers in sub Saharan Africa.
IFC funding for infrastructure projects in Africa reached $1.5 billion.
IFC’s Infraventures division joined hands with private sector partners
to develop wind power projects in Tanzania and Kenya. In West Africa,
IFC invested aviation companies and mobilized funding for the Lomé port
to expand the transportation network and improve trade infrastructure in
the region.
| Fragile and Conflict Affected States |
Assisting
in fragile and conflict situations is a strategic priority for IFC in
Africa, and during the most recent fiscal year, IFC provided support in
nearly all African economies emerging from conflict. IFC’s Conflict
Affected States in Africa Program provided advisory support and funding
to eight countries (Burundi, the Central African Republic, Cote
d’Ivoire, the Democratic Republic of Congo, Guinea, Liberia, Sierra
Leone, South Sudan). IFC’s programs in these countries helped strengthen
the private sector foundation, and create opportunity and jobs. Last
fiscal year, CASA received approval to expand to all 19 fragile and
conflict affected states in Sub-Saharan Africa and will focus the first
phase of the expansion on Mali, Somalia, and Zimbabwe.
Through
innovative use of treasury operations, IFC expanded its capability to
develop domestic capital markets and serve clients with local currency
financing. In FY13, IFC provided more than $350 million in local currency loans to countries in Sub-Saharan Africa. IFC pioneered a Nigerian naira bond, raising $75 million
in local currency for private sector investments. IFC is working with
authorities in a number of countries including Ghana, Nigeria and Zambia
on programs that will enable IFC to regularly issue local currency
bonds.
IFC’s focus on encouraging investments between emerging markets was strengthened this year through new investments of nearly $400 million
in so-called South-South investments. This included African
cross-border investments, such Mali-based Azalai Hotels Group’s new
hotel project in Cote d’Ivoire. In Nigeria, IFC financing supported
major investments by two Indonesian companies: Indorama’s investment in
Eleme Fertilizer and Wings Group’s Nigerian operations...."
