IFC Invests N300bn in Sub Saharan Africa
- By Simeon Ogoegbulem
- Published August 23rd, 2011
- News
- Unrated
The International Finance Corporation (IFC) has made new investments in sub Saharan Africa to the tune of $2.2 billion (about N300.3 billion). IFC said the new investments are spread across 31 countries in the continent.
IFC experts said the corporation’s strong business and development results extended across sub-Saharan Africa, supporting regional growth despite turbulence in the global economy. The investments resulted in the generation of power for an additional 6.6 million people, connecting about 59 million telephone users, extending support to nearly 500,000 students, provision of loan to 241,000 small businesses and 261,000 farmers as well as the creation of about 217,000 jobs
According to the IFC experts, out of the 95 new investments made during the last fiscal year, 87 were in the world’s lowest income economies, where IFC’s development impact is especially pronounced. IFC also mobilized an additional $589 million from other investors.
IFC advisory services was active in 31 countries in Africa, with 133 projects valued at $189 million through June 2011. Of these projects, 121 were active in the region’s lowest income economies. IFC expanded initiatives to support the growth and development of the private sector in economies affected by conflicts, especially South Sudan and Liberia.
Yolande Duhem, IFC Director for West and Central Africa, said IFC made significant progress in supporting Africa’s development last year. “Our investments in West and Central Africa and other parts of the continent grew, as we saw important reforms to improve the investment climate in the region, innovative projects in priority sectors, and we have a large portfolio of investment and advisory projects that are improving people’s lives through better services and opportunities.”
Jean Philippe Prosper, IFC director for Eastern and Southern Africa, said, “our increasing activities in Africa reflect IFC’s commitment to mobilize resources for entrepreneurial activity and projects driving forward the region’s private sector.”
Prosper added that IFC’s investments and advisory services are creating jobs, improving infrastructure, securing access to finance for small and medium enterprises and raising health, education and living standards for Africans.”
In West and Central Africa, IFC provided $1.3 billion in new financing commitments, an 8.5 per cent increase over last year. IFC supported private sector involvement in novel infrastructure projects, such as the Dakar Toll Road, which will improve transport and trade in Senegal. The road is being built on concession, the first experience of its kind on the continent, outside of South Africa.
In other projects in Senegal, IFC invested in two microfinance institutions and launched a rural electrification project in collaboration with Comasel Louga. In Ghana, IFC made a push into the telecoms sector by supporting Vodafone Ghana in its expansion program. Vodafone will provide affordable, reliable mobile phone services to previously underserved areas of the country.
IFC’s investments in agribusiness included the fast-food restaurant chain, Food Concepts in Nigeria, who aim to integrate SMEs into the food supply chain in West Africa. As the political climate stabilizes in Cote d’Ivoire, IFC was quick to re-engage in the country with an investment in microfinance bank, Advans. In terms of advisory services, IFC worked on improving leasing laws in Liberia and Sierra Leone and undertook activities to improve investment climate in Mali, Burkina Faso and the Central African Republic. In Chad, IFC launched a Village Phone Program in Chad that will bring phones to rural communities.
Through the Investment Climate Advisory Services of the World Bank Group, IFC supported the effort by 16 West African countries to change their common business legislation to significantly improve their business climate. The OHADA project addresses two of the top constraints to enterprise development and investment in Africa: access to finance and the quality of the legal framework.
The reforms achieved have removed some of the main legal constraints to entrepreneurship and access to credit in the region and will help countries become more attractive to investors. The project is one of the first of this size and duration that works with a regional organization rather than an individual country government.
IFC continued to promote public-private partnerships, notably, through an advisory services mandate with the government of Benin in the tender for a new public hospital, replicating a former IFC project in Lesotho.
IFC experts said the corporation’s strong business and development results extended across sub-Saharan Africa, supporting regional growth despite turbulence in the global economy. The investments resulted in the generation of power for an additional 6.6 million people, connecting about 59 million telephone users, extending support to nearly 500,000 students, provision of loan to 241,000 small businesses and 261,000 farmers as well as the creation of about 217,000 jobs
According to the IFC experts, out of the 95 new investments made during the last fiscal year, 87 were in the world’s lowest income economies, where IFC’s development impact is especially pronounced. IFC also mobilized an additional $589 million from other investors.
IFC advisory services was active in 31 countries in Africa, with 133 projects valued at $189 million through June 2011. Of these projects, 121 were active in the region’s lowest income economies. IFC expanded initiatives to support the growth and development of the private sector in economies affected by conflicts, especially South Sudan and Liberia.
Yolande Duhem, IFC Director for West and Central Africa, said IFC made significant progress in supporting Africa’s development last year. “Our investments in West and Central Africa and other parts of the continent grew, as we saw important reforms to improve the investment climate in the region, innovative projects in priority sectors, and we have a large portfolio of investment and advisory projects that are improving people’s lives through better services and opportunities.”
Jean Philippe Prosper, IFC director for Eastern and Southern Africa, said, “our increasing activities in Africa reflect IFC’s commitment to mobilize resources for entrepreneurial activity and projects driving forward the region’s private sector.”
Prosper added that IFC’s investments and advisory services are creating jobs, improving infrastructure, securing access to finance for small and medium enterprises and raising health, education and living standards for Africans.”
In West and Central Africa, IFC provided $1.3 billion in new financing commitments, an 8.5 per cent increase over last year. IFC supported private sector involvement in novel infrastructure projects, such as the Dakar Toll Road, which will improve transport and trade in Senegal. The road is being built on concession, the first experience of its kind on the continent, outside of South Africa.
In other projects in Senegal, IFC invested in two microfinance institutions and launched a rural electrification project in collaboration with Comasel Louga. In Ghana, IFC made a push into the telecoms sector by supporting Vodafone Ghana in its expansion program. Vodafone will provide affordable, reliable mobile phone services to previously underserved areas of the country.
IFC’s investments in agribusiness included the fast-food restaurant chain, Food Concepts in Nigeria, who aim to integrate SMEs into the food supply chain in West Africa. As the political climate stabilizes in Cote d’Ivoire, IFC was quick to re-engage in the country with an investment in microfinance bank, Advans. In terms of advisory services, IFC worked on improving leasing laws in Liberia and Sierra Leone and undertook activities to improve investment climate in Mali, Burkina Faso and the Central African Republic. In Chad, IFC launched a Village Phone Program in Chad that will bring phones to rural communities.
Through the Investment Climate Advisory Services of the World Bank Group, IFC supported the effort by 16 West African countries to change their common business legislation to significantly improve their business climate. The OHADA project addresses two of the top constraints to enterprise development and investment in Africa: access to finance and the quality of the legal framework.
The reforms achieved have removed some of the main legal constraints to entrepreneurship and access to credit in the region and will help countries become more attractive to investors. The project is one of the first of this size and duration that works with a regional organization rather than an individual country government.
IFC continued to promote public-private partnerships, notably, through an advisory services mandate with the government of Benin in the tender for a new public hospital, replicating a former IFC project in Lesotho.
