(Ecofin Agency) - According to the international financial institution, the record financing helped “develop regional pharmaceutical manufacturing, increase intra-Africa trade, expand access to climate financing, and strengthen food security among many other pressing development needs.”
The International Finance Corporation (IFC) claims “record financing” in Africa during its 2022 fiscal year that ended June 30, 2022.
Today, Monday, July 25, the international financial institution estimated that it committed US9.4 billion in 36 African countries during the period. The volume committed is “the largest ever annual commitment for the continent,” stresses the institution managed by Senegalese economist Makhtar Diop (photo).
According to IFC Vice President for Africa, Sergio Pimenta, the financing has been stepped up to support the private sector, which “is indispensable to helping countries and companies navigate” socio-economic challenges including the persisting COVID-19 pandemic and global inflation.
Of the US$9.4 billion committed, US$3 billion funded trade while US$2.1 billion was disbursed for green businesses and renewable energy projects. US$861.7 million was invested to finance digital connectivity and US$603 million funded businesses in the agricultural sector.
Overall, the IFC’s FY2022 commitment in Africa was constituted of “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.”
The institution also provided more than US$450 million in advisory and upstream services through 298 projects aimed at improving the investment climate and creating markets; 20% of the advisory and upstream spending was on climate change projects and 53% of all new projects approved supported gender equality improvements.
During FY2021, the IFC committed US31.5 billion in all the emerging countries where it operates. The volume was up by 11% compared to the previous fiscal year. The institution notably provided US$8.2 billion in short-term financing and US$23.3 billion in long-term financing to private enterprises in emerging and developing economies, according to the World Bank Group's FY 2021 financial statements released on August 9, 2021.