The World Bank’s International Finance Corporation (IFC), which funds private-sector activities in developing countries, reported on Tuesday that it had committed and mobilised record investments of $5.3-billion for sub-Saharan African projects during its 2013 financial year, when it invested $24.8-billion globally.
The development finance institution invested $3.5-billion from its own account, and mobilised $1.8-billion from other investors. It also carried out advisory projects worth $65-million in the region during the period.
Funding for infrastructure projects in Africa rose to $1.5-billion from around $1-billion in 2012, with the IFC’s Infraventures division partnering with the private sector on wind power projects in East Africa and in transport and logistics ventures in West Africa.
In Southern Africa, the IFC committed $546-million to 23 projects, with $401-million in new commitments for South African activities across the renewable energy, agribusiness and financial sectors.
It invested about $143-million in direct financing, and coordinated a further $264-million in parallel loans, to support the construction of two Abengoa concentrated solar power projects, which are currently under construction in the Northern Cape. It also provided $73-million to support the Amakhala wind power project, in the Eastern Cape.
The organisation estimates that its investments in wind power and other renewable-energy projects eliminated 667 000 t of greenhouse-gas emissions.
The IFC’s agribusiness investments in sub-Saharan Africa reached $600-million and, in South Africa, it provided support for Hans Merenksy Holdings, an avocado grower and plantation forest company, and Country Bird, a poultry company.
IFC director for Eastern and Southern Africa Oumar Seydi said the commitments made during the year supported Africa’s economic growth by supporting entrepreneurs and farmers, improving infrastructure and basic services, and catalysing business in countries recovering from conflict.
The organisation’s Conflict Affected States in Africa (Casa) programme provided advisory support and funding to eight countries, including Burundi, the Central African Republic, Cote d’Ivoire, the Democratic Republic of Congo, Guinea, Liberia, Sierra Leone and South Sudan.
Casa also received approval during the period to expand to all 19 fragile and conflict-affected States in sub-Saharan Africa and will focus the first phase of the expansion on Mali, Somalia and Zimbabwe.