Development finance institution the International Finance Corporation's (IFC's) investments in Africa totalled $14.2-billion in the past fiscal year, or 23% higher than the prior year, which is its largest ever commitment to the continent.

Its investments supported Africa’s clean energy, manufacturing, digital connectivity, small business, trade, agriculture, and other vital sectors during its 2024 fiscal year from July 1, 2023 to June 30, 2024.

Of the total investment amount, the IFC committed $8.5-billion in long- and short-term financing from its own account and mobilised $5.7-billion from partner investors.

Specifically, the IFC committed $3.9-billion in trade financing, $1.6-billion to help smaller businesses grow, $1.1-billion to boost digital connectivity, and $1.9-billion for climate change mitigation and adaptation, including in clean energy and green building projects.

About 41% of the IFC’s own account financing was dedicated to addressing climate change, 50% to supporting projects with a gender lens, and 21% to low-income countries.

The IFC investments in Africa during the year supported 130 projects across numerous sectors. Among the projects were a sustainability-linked loan to allow Cabo Verde to modernise and reduce emissions at its seven airports.

Another was an almost $200-million investment to support food security, access to finance, and the sustainable agriculture and construction sectors in Morocco and other parts of Africa.

Similarly, it also formed a partnership with Côte d'Ivoire's Ministry of Health on two public-private partnerships to enhance laboratory and imaging services in 14 public hospitals in the country.

Additionally, the IFC made a $3.4-million equity investment into online women-led artisanal businesses platform ANKA, which connects buyers to these businesses, thereby strengthening Africa's creative industries and its online retail sector.

“Africa is again on a stronger growth trajectory after several challenging years and the IFC is increasing its support for the continent’s private sector, delivering solutions to clients ranging from small startups seeking seed funding to large companies looking to expand into new markets,” says IFC Africa VP Sérgio Pimenta.

“The reach of our activities across the continent, and our record investment last fiscal year, reflects our commitment to mobilising private-sector solutions for sustainable development, especially in Africa’s most challenging markets.”

The IFC supported private-sector development in 45 countries in Africa during the year and, of the 45 countries, 30 were classified as low-income and/or fragile and conflict-affected situations, where the need for investment and market support is generally the greatest.

Further, its support for fragile and conflict-affected regions in Africa included a risk-sharing facility with Deutsche Bank of up to €215-million that is boosting trade in some of the continent’s most challenging markets.

Similarly, it also has a $100-million financing package for renewable-energy company Release to help meet growing electricity demand in Chad, Cameroon and other countries.

Its record financing and broad advisory support is helping strengthen markets and creating jobs, including in many of the continent’s most-in-need countries, he says.

In addition to its investments in Africa, the IFC provided Advisory and Upstream Services with a portfolio of more than $455-million aimed at strengthening countries’ investment climates, helping businesses narrow the gender gap, and improving their governance, environmental and social performance.