Washington, D.C. January 26, 2015 –
IFC, a member of the World Bank Group, plans to invest $30 million in Guinea
in 2015, boosting support for small and medium enterprises in the country,
which are critical for job creation and economic growth.
Guinean President Alpha Condé said: "We
need to build a strong, competitive Guinean private sector capable of creating
jobs - empowering our youth and women who are the drivers of change. This
is critical in implementing the transformation we need to achieve the inclusive
and fast paced development Guinea needs."
IFC Executive Vice President and CEO Jin-Yong
Cai met Guinean President Alpha Conde last week at the World Economic Forum
Annual Meeting in Davos, Switzerland.
“It is estimated that even before the Ebola
crisis began, SMEs in Guinea faced a $900 million financing gap, with only
6% of firms able to access the credit they need,” said Cai, speaking on
the sidelines of the World Economic Forum in Davos. “SMEs are critical
to job growth and economic recovery, and IFC is working through our financial
intermediary and corporate clients to ensure SMEs have the capital and
access to markets they need to grow, as well as training and capacity building
to boost their competitiveness.”
Over the past three years, IFC has made $10.5
million of investments in Guinea targeting the critical SME sector through
three partner financial institutions. The Corporation has a pipeline of
$30 million targeted to reach more than 600 SMEs through risk sharing facilities.
These investments will have an increased focus on women and the agribusiness
sector in particular. This is in addition to the $17.5 million in support
IFC announced November 2014 under its Ebola Emergency Liquidity Facility
through two Guinean banks.
IFC’s Global Trade Finance Program, has
supported a total of $582 million in trade since its introduction in the
country. IFC supported training programs have reached 1000 SMEs through
its Africa Leasing Program and SME training tool IFC Business Edge, with
plans to reach hundreds more in the near future.
IFC is also supporting public-private dialogue
platforms, rolling out the IFC investment climate program - designed
to improve business regulation, investment and tax policy - and helping
the energy sector improve the quality of service provided to SMEs and other
private sector players. This includes the development of a national local
content policy, and technical assistance to mining companies in areas such
For example, IFC’s partnership with Rio
Tinto in the Simandou mine construction project in Guinea is expected to
create 10,000 jobs at the height of construction. IFC estimates that 3,500
SMEs will be suppliers to Simandou once it reaches a steady state of operations,
creating an estimated additional 20,000 jobs.
The World Bank Group is mobilizing nearly
$1 billion in financing for the countries hardest hit by the Ebola crisis.
This includes $518 million from IDA for the emergency response, and at
least $450 million from IFC to enable trade, investment and employment
in Guinea, Liberia and Sierra Leone.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. We help developing countries achieve sustainable growth by financing
investment, mobilizing capital in international financial markets, and
providing advisory services to businesses and governments. In FY14, our
investments reached an all-time high of more than $22 billion, leveraging
the power of the private sector to create jobs, spark innovation, and tackle
the world’s most pressing development challenges. For more information,