In fiscal year 2023, the International Finance Corporation (IFC) provided record financing in Africa, assisting in accelerating the continent’s energy transition, developing greener manufacturing, increasing intra-Africa trade, strengthening smaller businesses, and increasing local food production, including in more challenging, fragile, and conflict-affected regions.
Between July 1, 2022, and June 30, 2023, the IFC invested $11.5 billion across 40 nations, the greatest yearly commitment for the continent. The assistance includes $1.12 billion in trade financing, $876 million for the continent’s shift to renewable energy, and $1.98 billion to help small businesses grow and create jobs. IFC also contributed $1.76 billion to improve digital connectivity through investments in telecom towers, broadband, and mobile internet expansion.
IFC contributed $3.5 billion in short-term finance and mobilized $3.1 billion of the $11.5 billion, with 40% of IFC’s own account financing dedicated to combating climate change and 48% going to low-income, fragile, and conflict-affected governments.
“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. “Catalyzing 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.”
As the continent accelerates its climate response and shifts to a net-zero world, IFC increased its financing for climate projects. This included $1.2 billion in financing to support financial institutions to expand their climate and sustainability lending, $1.1 billion to AMEA Power to build Egypt’s largest wind and solar plants, a €242 million financing package for Senegal’s Sococim Industries and a $500 million investment in BUA Cement in Northern Nigeria to promote greener, low-carbon cement manufacturing.
To strengthen digital connectivity, IFC and MIGA announced $1.3 billion in equity investments, loans, and guarantees to support Safaricom Ethiopia’s greenfield telecommunications network across Ethiopia. And to empower more small businesses, IFC provided $208 million to partners in 12 countries through the Base of the Pyramid Program including on boarding new partners in Cameroon and Madagascar into the program.
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. IFC and its partners also announced four new projects through the Alliance for Entrepreneurship in Africa to support micro, small, and medium-sized enterprises and help address food insecurity, and increase trade and agricultural productivity and efficiency.