Keypoints:
- IFC expands local-currency lending across Africa
- Aims to attract large-scale global investors
- Push for market integration and local financing
THE International Finance Corporation (IFC), the private investment arm of the World Bank, is scaling up its local-currency lending and direct investments across Africa in an effort to make regional projects large enough to attract global institutional investors.
Managing Director Makhtar Diop announced the expansion during the Africa Financial Summit in Casablanca on Monday, noting that the move is central to bridging Africa’s financing gap and reducing its exposure to currency volatility.
Scaling projects to global investor appetite
‘What investors tell us is that when we have assets of less than a billion, it doesn’t interest us,’ Diop told delegates. ‘When you talk to BlackRock and other major funds, they say they need a certain volume to invest in our countries and have long-term resources.’
The IFC’s strategy aligns with broader global efforts to channel more private capital into developing economies, as traditional aid and concessional financing decline. Analysts say that local-currency lending not only boosts private-sector participation but also shields countries from exchange-rate shocks that can erode debt sustainability.
Africa key to IFC’s growth strategy
According to Reuters, Africa accounted for over $15bn of IFC commitments last year, largely in debt and trade finance. Local-currency lending now represents about 30 percent of the institution’s total portfolio — a share Diop expects to rise as African markets mature.
‘We are committed to working with African institutions to create larger, investable projects that can draw long-term capital from global players,’ Diop said.
Partnerships to deepen market integration
The IFC is also building partnerships with commercial banks to swap dollar-denominated resources for local-currency lines, a move Diop said would strengthen domestic liquidity and foster sustainable lending environments.
He added that greater regional market integration — including interoperable stock exchanges — could unlock African savings and attract institutional investors seeking stable, long-term assets.
‘Deeper integration will help us mobilise savings within Africa and bring in investors who are ready to stay for the long term,’ Diop said.
The renewed push by the IFC marks a significant step in its strategy to support Africa’s financial resilience amid global economic headwinds and growing investor demand for scalable, sustainable opportunities.
