Wednesday, 13 February 2013 20:10

IFC posts $4bn profit in Africa, to expand investment in Region

Written by LILLIAN ONYANGO

 

IN SUMMARY

Investments made by IFC infrastructure, health, education, and agribusiness projects in sub-Saharan Africa yielded the record results in the fiscal year 2012, making the EAC a likely beneficiary for more funding, IFC executives said.

IFC Director for East and Southern Africa Jean Philippe Prosper said it aims at delivering essential services, through its projects and job creation to those deemed unqualified for the services.

The results released last week showed that IFC’s investment clients benefited from $1.2 billion mobilised from other investors, and are expected to generate power for 1.54 million new customers, support 23,000 farmers, improve health services for 50,000 patients, and reach 10,000 students.

 

The International Finance Corporation (IFC), World Bank’s private-sector lending arm, is set to increase its investment in the East African region in the coming fiscal year, after posting $4 billion in profits from Africa.

 

Investments made by IFC infrastructure, health, education, and agribusiness projects in sub-Saharan Africa yielded the record results in the fiscal year 2012, making the EAC a likely beneficiary for more funding, IFC executives said.

 

IFC funding for infrastructure and natural resources projects in Africa passed the $1 billion mark for the first time last fiscal year, including investments in Tanzania’s nickel mining project in Dutwa, Kenya Airways rights issue and Rwanda’s SME tool kit dubbed “Hanga Umulimo”.

 

IFC intends to lend 10 Kenyan companies at least $401 million in 2012-2013, with particular emphasis on energy, transit and information and communications technology sectors.

 

Last year, IFC lent Kenya $361 million, which was 9 per cent of $4 billion it invested in 33 sub-Saharan African countries.

 

IFC Director for East and Southern Africa Jean Philippe Prosper said it aims at delivering essential services, through its projects and job creation to those deemed unqualified for the services.

 

“IFC strives to promote open and competitive markets in Africa, as reflected in our development impact and highest-ever investment figures,” he said.

 

The results released last week showed that IFC’s investment clients benefited from $1.2 billion mobilised from other investors, and are expected to generate power for 1.54 million new customers, support 23,000 farmers, improve health services for 50,000 patients, and reach 10,000 students.

 

In Kenya, IFC put in funds in two government-tendered independent power projects: Thika power and Gulf Power Ltd.

 

And to make transportation of goods across the region easier, IFC and with six other finance institutions provided a $164 million financing support to Rift Valley Railways to rehabilitate the Kenya-Uganda railway line.

 

While in Burundi it made its 100 hotel investment in Africa with a $5.5 million loan to hotel company, Opulent (B) Ltd to help improve the country’s portfolio as a business destination by providing international-standard rooms and conference facilities.

 

In March 2012, IFC extended a $100 million loan to Equity Bank Ltd to support lending to SMEs and women entrepreneurs, and expand lending in Kenya, Uganda, Tanzania, South Sudan and Rwanda.

 

Previously, IFC provided investment and advisory services to Bank of Africa and Diamond Trust bank to help them increase their support for SMEs in East Africa.

 

IFC Advisory Services created 25,500 jobs and worked with other financial institutions to provide more than $1 billion in loans to African entrepreneurs in the 2011 calendar year.

 

IFC ran a Business Edge programme, which provided management training for entrepreneurs in Uganda, South Sudan, Rwanda, Kenya and Burundi.

 

Source: The EastAfrican

 

Last modified on Thursday, 14 February 2013 14:28