Recently appointed to lead the International Finance Corporation’s (IFC) operations in Africa, Ethiopis Tafara visited Lomé as part of “Africa Leads,” a forum bringing together project leaders supported by the World Bank Group across West and Central Africa. In this exclusive interview with Togo First, he reflects on the impact of IFC’s presence in Togo, outlines the institution’s strategy for supporting local businesses, and shares his vision of the key priorities for West Africa in a rapidly shifting global landscape.

Togo First: The IFC opened an office in Togo five years ago. In your opinion, what are the three most notable impacts of this official presence?

Ethiopis Tafara: I would start with the significant increase in investments in Togo over the past five years. Back then, our program was quite limited. Since then, we have invested or mobilized about $186 million—a record amount. This represents a major shift, with a focus on key sectors such as energy and telecommunications.

We invested, for example, in the Lomé container terminal, our initial entry point. Since then, we’ve also supported Togocom and Star Garments, a large-scale clothing manufacturer for export markets—comparable to what exists in Bangladesh. We’ve also worked to improve energy access, including an investment in Zener, which helped build propane and butane storage terminals.

We focus on sectors where Togo has a comparative advantage. Supporting SMEs is critical, as they generate the majority of jobs. Financing them is essential. Similarly, energy, transport, and logistics are key priorities—we’ve also invested in Gozem, which is doing an excellent job in urban mobility.

Business Climate and SMEs

Togo First: What have you learned from the Togolese experience, particularly regarding the business environment, and how does it shape your broader strategy?

Tafara: The main takeaway is the importance of an enabling investment environment. This is fundamental to mobilizing investments and developing the private sector, which in turn creates jobs. This principle applies across all the countries where we operate. That’s why we work closely with the World Bank, which directly supports governments with the reforms needed to attract investors.

Togo First: You’ve supported firms like Yatt & Co, Label d’Or, and Gozem. How do you tailor your strategy to Togo’s private sector, especially in agribusiness, energy, or logistics?

Tafara: I’m often asked whether we only support large companies. In fact, we invest in both large and small enterprises. What matters is impact. We seek out “local champions” that we can support and scale into role models for the domestic market—and sometimes regional ones, like Gozem. At the beginning, they didn’t fully meet our standards. We helped them structure their operations—environmental management, social risk—and we’re considering even greater support in the future.

We also work on large infrastructure projects—ports, roads, energy. The key is maintaining balance. We not only provide loans but also take equity stakes in companies that offer solutions to urgent development challenges.

Togo First: What about SME support?

Tafara: Our organization is not always structured to directly serve the vast SME segment that exists in many of the countries we operate in. We can't support each one individually. Instead, we rely on intermediaries—local banks and financial institutions that already manage portfolios of SMEs. This portfolio approach reduces risk and allows us to reach far more SMEs efficiently and indirectly.

Togo First: Green financing is increasingly crucial for our country. How do you identify projects to support?

Tafara: We work with developers in solar, wind, and hydro power—the cleanest energy sources. More broadly, all our projects must meet strict environmental and social standards. We evaluate their resource use, environmental impact, and more. In that sense, almost everything we do is “green.”

We also support electric mobility (e-mobility), which is well-suited to urban environments and environmentally friendly.

Future Outlook and Geopolitical Shifts

Togo First: Are there any flagship projects in the pipeline, here or in West Africa, particularly in innovative financing?

Tafara: Yes. I’m currently focusing on three priorities: equity financing, which is riskier but much more transformative; local currency financing, because borrowing in foreign currencies is often too risky for businesses earning in local currency; and energy, which is fundamental to development.

We are also working to increase the continent’s self-sufficiency: producing locally what we currently import—like medicine and food.

Togo First: Togo has now consistent ties with countries like China, as business and investment partners. How does IFC - that typically could be seen as a Western institution - position itself in this South-South dynamic?

Tafara: South-South cooperation is a good thing. Emerging markets should build stronger economic ties among themselves. Asian countries, and even leading African economies, are investing in our markets. That’s a positive development.

Our mission—to reduce poverty and create jobs—remains unchanged, regardless of geopolitical tensions. That’s what has kept us relevant for 80 years.

Togo First: With rising isolationism in the U.S., do you fear funding cuts, like those recently seen at the WHO or the AfDB?

Tafara: IFC does not depend on direct donor contributions. Our balance sheet is strong, allowing us to meet our clients’ financing needs. And none of our shareholders oppose job creation—it fosters stability and reduces migration. Our mission remains “timeless.”

Togo First: Any final thoughts?

Tafara: Africa is at a turning point. By 2050, a quarter of the global workforce will be African. This demographic dividend is a major opportunity—provided we can create productive jobs. That means investing in agricultural value chains, and also in tourism, which remains underutilized despite the continent’s enormous potential.

Interview by Ayi Renaud Dossavi