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IFC, a member of the World Bank Group, today announced a record investment volume in Sub-Saharan Africa for its 2010 fiscal year, underscoring its commitment to the region’s private sector development, especially to supporting growth in the lowest income countries and those affected by conflict.
IFC, a member of the World Bank Group, today announced a record investment volume in Sub-Saharan Africa for its 2010 fiscal year, underscoring its commitment to the region’s private sector development, especially to supporting growth in the lowest income countries and those affected by conflict.
During the fiscal year that ended in June 2010, IFC increased its investments in Sub-Saharan Africa to $2.4 billion for its own account from $1.8 billion a year earlier. It was the first time IFC’s annual investments surpassed $2.0 billion in the region. IFC mobilized an additional $1.1 billion from other investors and approved 40 new Advisory Services projects during FY10.
Thierry Tanoh, IFC Vice President for Latin America and the Caribbean, Sub-Saharan Africa, and Western Europe, said, “Private businesses that are delivering services and creating employment and other opportunities are changing lives for the better in Africa. Through another record year, IFC is demonstrating the enormous private investment potential in Africa and the continent’s readiness to attract more."
In support of increased development impact in the world’s poorest countries, IFC dedicated nearly $400 million in financing in Africa to projects that strengthen micro-, small and medium enterprises. Following the global financial crisis, IFC provided significant support for trade finance to domestic and international banks. More than $68 million went toward lessening the effects of climate change on the continent.
IFC managed 168 regional Advisory Services projects in Africa, supporting increased access to finance, sustainable business practices, and improved investment climates. Seventy percent of the $248 million in Advisory Services projects under management were dedicated to the region’s poorest countries, also known as IDA countries.
IFC Asset Management Company, during its first year of operation, supported $140 million in Sub-Sahara African investments in manufacturing and financial services, investing alongside IFC. IFC AMC, a wholly-owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns and positive development impact in countries where it invests.
IFC mobilized additional investments through loan syndications and through a Global Trade Liquidity Program.
IFC’s strategy in Africa emphasizes three key areas: improving the investment climate; enhancing support to micro-,small and medium enterprises; and developing new projects in priority sectors, such as building infrastructure, advancing health care, developing agribusiness, and promoting the recovery of countries affected by conflict.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.
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