Friday, December 16, 2011

IFC to approve US$300m for infrastructure

The International Finance Corporations (IFC), a member of the World Bank Group, aims to approve approximately US$300 million for the development of the country’s infrastructure sector, beginning 2012.

Its investment commitments in the country amounted to $191.8 million in five new projects during 2011 financial year. It also provided $150million worth of trade finance guarantee commitments to Ecobank, GTBank, Merchant Bank, and The Trust Bank.

“As part of its goals through 2012, the IFC says it aims to “balance the urgent needs in developing countries with its capacity to address them in a way which maximises development impact and ensures a sustainable business model for the Corporation,” Mary-Jean Moyo, IFC’s Country Manager for Sub- Saharan Africa Development told selected journalist in Accra.

She added: “IFC’s strategy in Ghana focuses on supporting the development of infrastructure, including oil, gas, and mining, telecommunications.
“IFC also aims to deepen the financial sector, promote smaller businesses and encourage agribusiness and other key sectors of the economy.”

Moyo disclosed that the Corporation has greatly expanded its investment and advisory services portfolios in the country, investing $1.5 billion in 63 projects, with $1.1billion from its own account and US$380 million in syndicates and guarantees.

“IFC establishes partnerships with donors, governments, and the private sector to design and deliver advisory services solutions in Ghana that improves the investment climate, mobilise private sector investment and enhance the competitiveness of private enterprises.”

IFC’s primary goal is greater development impact, and, together with additionality for its investment and advisory activities which becomes even more critical in a resource-constrained environment.

IFC will therefore further strengthen its development impact measurement and analysis as a tool for decision-making, and will also concentrate on reaching more SMEs, which are a key part of the private sector in most emerging markets and important for job growth in many countries.”

Investments in Africa

In the region, the IFC’ s recipient countries include: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, Cote d’ Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Nigeria, Rwanda, Senegal, Seychelles, Sierra Leone, Sao Tome and Principe, South Africa, Tanzania, Togo, Uganda, and Zambia.

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, the IFC dedicated nearly US$400 million in financing in Africa to projects that strengthen micro-, small and medium enterprises.

A key component of the IFC’ s SME support initiatives are its IFC SME Solutions Centers. These centers promote access to finance for SMEs in the region, with support including business information, broadband access, office space and database management. Over 450 businesses in Madagascar and Kenya have benefited from these incubation services in recent years.

In the past year, the 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.

The 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.

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