Reaching a more diverse range of countries, including Africa's poorest and those affected by conflict, is a top priority for IFC in Africa.
In the fiscal year that ended in June 2008, IFC committed investments in 25 African countries and managed advisory services programs in thirty six.
Expanding into countries with small private sectors has historically proved challenging for IFC. Through innovation and better combined delivery of investment and advisory services, IFC is today helping bring more tangible benefits to more people than ever before.
ETHIOPIAN CEMENT
One such country is Ethiopia. In June, IFC signed an agreement with the Derba Midroc Cement Private Limited Company to help build a new plant that will address Ethiopia’s cement shortage and generate employment.
IFC's $55 million loan, which will be complemented by an additional $145 million in debt financing from other international financial institutions and a local bank, was IFC’s first transaction in Ethiopia since 1989 and its largest ever in the country.
"The private sector in many countries and regions in Africa is still at a very early stage of development," notes Thierry Tanoh, IFC Vice President for Sub-Saharan Africa. "IFC places a priority on increasing its activities in these regions where it is needed the most, building a base for sustainable economic growth and increasing opportunities for people to improve their lives."
NEW INVESTMENTS IN DJIBOUTI AND CAR
IFC also invested in Djibouti and the Central African Republic for the first time last fiscal year. In Djibouti, IFC's investment was made through a new a new $100 million fund that will support development of infrastructure in the world’s poorest countries.
The Djibouti fund will finance the exploration and subsequent development of geothermal resources. IFC's investment in the Central African Republic was through a EUR10 million investment Capital Financial Holdings SA, the first financial holding company in the Central Africa region with operations in Cameroon, Chad, and CAR.
To further increase its activities where the private sector is at the early stages of development, IFC cooperates closely with the International Development Association, the World Bank’s concessionary lending arm, to structure investments in low-income countries and regions.
Joint projects often involve an IDA credit or guarantee alongside an IFC investment. Our advisory services teams are also active in some of the world's most difficult environments, often focusing on improving the investment climate and addressing gaps in access to infrastructure and financial services.
For more information contact:
Houtan Bassiri
Communications Officer
Johannessburg, South Africa
Tel: +27-11-731-3179
Email: HBassiri@ifc.org
