IFC Funding in Africa Hits Record $14.2bn in FY 2023-24, Up 23%

(Ecofin Agency) - The World Bank's private arm supported 130 projects in 45 countries with a record $14.2 billion to assist local entrepreneurs who often face challenges accessing financing.

The International Finance Corporation (IFC) announced on October 30 a record $14.2 billion in investments across Africa during the 2023/2024 fiscal year, which ran from July 1 to June 30. This figure marks a 23% increase from the previous year.

The funds include $8.5 billion in direct long- and short-term financing by the IFC and an additional $5.7 billion raised from partner investors. IFC reports these funds were channeled into key sectors: $3.9 billion went to trade financing, $1.6 billion supported small business growth, $1.1 billion boosted digital connectivity, and $1.9 billion was directed toward climate resilience, including clean energy and sustainable building projects.

In total, IFC-backed investments supported 130 projects in 45 African countries, with 30 of these nations classified as low-income or facing conflict and fragility. These projects spanned sectors such as clean energy, manufacturing, digital connectivity, trade, agriculture, healthcare, and finance.

Beyond funding, the IFC provided advisory and project support valued at over $455 million to enhance Africa’s investment climate. This support helped local businesses tackle gender inequality and improve governance, environmental practices, and social outcomes.

“Africa is again on a stronger growth trajectory after several challenging years and IFC is increasing its support for the continent’s private sector, delivering solutions to clients ranging from small start-ups seeking seed funding to large companies looking to expand into new markets,” said Sérgio Pimenta (pictured), IFC’s Vice President for Africa.

Source: Ecofin Agency