In fiscal year 2024, the International Finance Corporation (IFC) committed a record $14.2 billion in investments across 45 African countries, marking a significant milestone in its mission to foster sustainable development in the region. This funding, which represents a 23% increase from the previous year, will support a wide range of sectors, including clean energy, manufacturing, agriculture, trade, digital connectivity, and small businesses, particularly in the most fragile and low-income countries on the continent.
The investments aim to address critical challenges, with 41% of the total financing dedicated to climate change mitigation and adaptation, including clean energy projects, and 50% focused on gender-inclusive initiatives. Additionally, 21% of the total funding is directed towards countries facing fragile or conflict-affected situations (FCS), where the need for financial support is most urgent.
Investment Breakdown and Key Initiatives
The $14.2 billion invested in fiscal year 2024 includes $8.5 billion in long- and short-term financing from IFC's own account, alongside $5.7 billion mobilised from partner investors. The IFC’s investment priorities are spread across several strategic areas:
- Climate Change: $1.9 billion dedicated to combating climate change, including renewable energy projects such as the $100 million financing package for Release by Scatec, a renewable energy company expanding access to electricity in Chad, Cameroon, and other countries.
- Small Business Growth: $1.6 billion invested to support the growth of small businesses across the continent, including a $3.4 million equity investment in ANKA, an online platform connecting women-led artisanal businesses to global buyers.
- Digital Connectivity: $1.1 billion aimed at expanding digital infrastructure to improve access to technology and enhance economic opportunities.
- Trade and Food Security: $3.9 billion in trade financing, supporting the growth of sustainable agriculture, food security, and access to finance in countries such as Morocco.
- Healthcare: IFC’s partnership with Côte d'Ivoire’s Ministry of Health will improve laboratory and imaging services in 14 public hospitals across the country, enhancing healthcare delivery.
In addition to its direct investments, the IFC's advisory services portfolio in Africa exceeded $455 million. These advisory services focus on strengthening countries' investment climates, improving governance, narrowing gender gaps, and enhancing environmental and social performance.
Expanding Reach in Fragile Markets
The IFC’s support for fragile and conflict-affected situations has been a critical aspect of its strategy in Africa. In 2024, the corporation extended a risk-sharing facility with Deutsche Bank valued at €215 million, which is designed to increase trade and economic activity in some of Africa’s most challenging markets. Furthermore, the IFC’s financing initiatives, such as the $100 million renewable energy investment for Release by Scatec, aim to address infrastructure deficits and provide reliable electricity to countries facing significant economic and development hurdles.
Gender-Inclusive Investment
A significant portion of IFC’s activities in Africa has focused on gender equality. The corporation has expanded its partnership with Goldman Sachs’ 10,000 Women programme, providing increased opportunities for women entrepreneurs across French-speaking Africa. This initiative is part of IFC’s broader strategy to use finance as a tool for addressing gender disparities and fostering inclusive economic growth across the continent.
Looking Ahead: Continued Commitment to Africa's Future
With its record investment, the IFC has reinforced its role as a key player in the sustainable development of Africa's private sector. Sérgio Pimenta, IFC’s Vice President for Africa, commented on the progress made: “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.”
IFC’s efforts in 2024 have provided a strong foundation for future development, and with a growing portfolio and diversified donor base, the organisation is poised to continue playing a central role in strengthening Africa’s economy, addressing climate change, improving healthcare and infrastructure, and ensuring that more opportunities are available for small businesses and women entrepreneurs.
As the IFC prepares for the upcoming fiscal year, further investments and initiatives are expected to continue driving positive change, contributing to a more resilient and sustainable African continent.
