Dakar, August 26, 2009—IFC, a member
of the World Bank Group, today signaled further commitment to increasing
private sector investment and advisory services in Senegal and West and
Central Africa at the release of its annual operational results. Director
for West and Central Africa, Yolande Duhem, highlighted recent trade finance
transactions, IFC’s growing regional relationships, and commitment to
expand its work in the power sector.
During the fiscal year that ended in June 2009, IFC increased its investment
in Sub-Saharan Africa to $1.8 billion reaching 30 countries, up from $1.4
billion in 25 countries the previous year. Of the $1.8 billion, IFC provided
$1.0 billion in new financing to businesses in West and Central Africa,
a 58 percent increase. IFC Advisory Services in Africa also increased
its volume in Sub-Saharan Africa by 35 percent to $38 million and doubled
its work in conflict-affected countries.
“Reaching Africa’s smaller markets is a top priority for IFC,” said
IFC Director for West and Central Africa, Yolande Duhem. “Through innovative
financing, increased advisory services, and working together with partners
who share our commitment to African development, we have been able to finance
more businesses in West and Central Africa.”
Among IFC’s major transactions in Senegal and West Africa in the fiscal
year ended June 2009 was a $2 million trade finance line to Ecobank Senegal,
part of a regional financing of more than $200 million to Togo-based Ecobank
In FY09, Dakar was named IFC’s subregional hub for West and Central Africa
as part of a broader commitment to do more business in the region. In Senegal,
in particular, IFC aims to support improved infrastructure, especially
in the power sector. IFC has previously invested in the Kounoune independent
power project and expects to do more to support rural electrification.
IFC continued to extend its regional reach in Africa to countries where
it has traditionally been less active. IFC last year committed its first
investment in Sao Tome and Principe, which became an IFC member state in
October 2008, by providing a trade finance line of $1 million to Banco
Internacional de Sao Tome e Principe. IFC opened new offices in the Central
African Republic and Ethiopia.
IFC announced in May that it is teaming up with other international financial
institutions to mobilize at least $15 billion over the next two to three
years to lessen the impact of the global financial turmoil on Africa. IFC
will contribute at least $1 billion to promote trade, strengthen the capital
base of banks and promote microfinance lending, and increase lending for
infrastructure projects and other real sectors of the economy experiencing
a shortfall in liquidity.
IFC’s strategy in Africa is based on three main components: improving
the investment climate, enhancing support to small and medium enterprises,
and developing new projects to support investments. IFC is also focusing
on building infrastructure, advancing health care, developing agribusiness,
reforming the investment climate, and promoting the recovery of countries
affected by conflict.
IFC committed investments in the following African countries last year:
Angola, Benin, Burkina Faso, Burundi, Cameroon, Chad, Cote d’Ivoire, Democratic
Republic of Congo, Ethiopia, Gambia, Ghana, Kenya, Liberia, Madagascar,
Malawi, Mali, Mauritania, Mozambique, Namibia, Niger, Nigeria, Rwanda,
Senegal, Sierra Leone, Sao Tome and Principe, South Africa, Tanzania, Togo,
Uganda, and Zambia.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $15
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
Notable Transactions in FY09
- Together with the African Development
Bank, the Bill & Melinda Gates Foundation, and the German development
finance institution DEG - Deutsche Investitions- und Entwicklungsgesellschaft
mbH, IFC created a new private equity fund that will invest in Africa’s
health sector. The fund reached a first closing of $57 million to invest
in small- and medium-sized companies, such as health clinics and diagnostic
centers, to help low-income Africans gain access to affordable, high-quality
health services. It will target total commitments between $100 to $120
- To strengthen Africa’s banking sector
and increase lending to small and medium enterprises that have difficulty
accessing credit, IFC provided a financing package of over $200 million
to Ecobank Transnational Inc., a pan-African bank with a network of over
500 branches in 27 countries. The financing will support the bank’s expansion,
promote lending to micro and smaller, and facilitate trade flows to the
region by guaranteeing the underlying trade transactions of Ecobank subsidiaries
in Benin, Burkina Faso, Côte d’Ivoire, Ghana, Mali, Niger, Nigeria, Senegal,
- IFC provided a $30 million guarantee
facility to Stanbic Bank Ghana to help it increase financing to companies
that purchase cocoa from small farmers in Ghana. The transaction illustrates
how IFC's agribusiness program in Africa is reaching small farmers through
local financial intermediaries.
- IFC invested in Sao Tome and Principe
for the first time by providing a trade finance line of $1 million to Banco
Internacional de Sao Tome e Principe. The bank utilized $0.68 million of
the line last fiscal year.
- IFC invested in the development of an
offshore oil and gas project that will help diversify Ghana’s economy,
meet domestic power demand, and generate revenue to support the country’s
economic growth and development. IFC will provide a loan of $100 million
to Kosmos Energy, one of the key partners developing Ghana’s Jubilee
field, located in deep water some 60 kilometers off the coast of Ghana.
IFC’s loan is part of a $750 million debt package for U.S.-based Kosmos
that IFC helped mobilize, primarily from commercial banks. IFC also signed
a $115 million loan agreement with British Tullow Oil, another key
Jubilee partner, bringing IFC’s support for the project to $215 million.
Kosmos and Tullow are independent oil and gas exploration and production