Development finance institution the International Finance Corporation (IFC) provided record financing of $9.4-billion in investments between July 2021 and June this year across 36 countries in Africa, helping to develop regional pharmaceutical manufacturing, increase intra-Africa trade, expand access to climate financing and strengthen food security.

The investments include $3-billion in trade financing that is unlocking intra-Africa trade for thousands of small businesses; $2.1-billion that is supporting the continent’s green transition, from increasing access to climate finance to funding renewable energy projects; and $861.7-million that is supporting increased digital connectivity.

The IFC also provided $603-million in agriculture financing, helping to strengthen food security during a turbulent global economic period, the organisation says.

“While the effects of the Covid-19 crisis persist, new challenges are also looming, including from rising global inflation. A strong and engaged private sector is indispensable to helping countries and companies navigate these and other challenges, which is why we stepped up IFC’s funding and support to help sustain and create jobs, improve basic services and foster growth for small and medium-sized enterprises,” says IFC VP for Africa Sérgio Pimenta.

As the continent responds to the effects of climate change and the call to shift to a net-zero world, the IFC increased its financing for climate projects.

This included launching the Scaling Mini-Grid programme in the Democratic Republic of Congo, an investment with Egypt-based electricity multinational Elsewedy Electric to increase access to renewable energy across Africa and support for green bonds, such as the one issued by financial services firm Nedbank in South Africa.

The IFC’s financing across Africa included short-term finance of $3-billion, and mobilisation of $2.6-billion, with 49% of IFC’s own account financing going to low-income and fragile and conflict-affected States.

During the financial year, the IFC also launched the Africa Fragility Initiative, a five-year programme dedicated to supporting private sector-led growth and job creation across 32 African countries affected by fragility and conflict, the organisation adds.

“To further support Africa’s regional trade development and reduce the continent’s reliance on imports, the IFC launched the $1-billion African Trade and Supply Chain Finance Program, which will begin financing initiatives from July 2022,” the IFC says.

Further, responding to Africa’s call to develop sustainable pharmaceutical and vaccine manufacturing, the IFC provided financing and advisory services to companies in Ghana, Nigeria, Rwanda, Senegal and South Africa to support the development of manufacturing hubs.

Meanwhile, in addition to its investments in Africa, the IFC provided Advisory and Upstream Services with a portfolio of more than $450-million across 298 projects aimed at improving the investment climate and market creation.

During the past financial year, 20% of the Advisory and Upstream spend was on projects focused on climate change and 53% of all new projects approved supported improvements in gender equality, the IFC says.