Sub-Saharan Africa

Strategy

IFC's strategy for promoting sustainable private sector growth and improving lives in sub-Saharan Africa, especially in the region’s least-developed economies and in those recovering from conflict, is built on three pillars:

• Improving the investment climate
• Enhancing support to small and medium enterprises
• Developing projects more proactively in sectors including infrastructure and agribusiness

Emphasis on these key areas has allowed IFC to expand rapidly in Africa, where in recent years we have broadened our support with increased investments and launched innovative advisory services programs that are improving lives for students, farmers, smaller businesses and millions of others. Our commitments in Africa have grown from $445 million in FY05 to $2.2 billion in FY11, the second year running our investments topped the $2 billion mark.

1. Improving the Investment Climate

Investors and private businesses must have the right environment to operate – transparent, robust institutions, and an efficient and clear business regulatory environment. A key part of IFC's strategy in Africa centers on providing advisory services to help governments and our private sector partners identify and tackle barriers to sustainable private investment.

These services, for example, include the unique Doing Business indicator project, and the ability to leverage our relationship with the World Bank Group through the Investment Climate Services of the World Bank Group. A more business-enabling environment boosts the growth of smaller businesses and attracts foreign investment, both vital to Africa’s development and key to reducing poverty.

2. Enhanced Support to Small & Medium Enterprises

Small and medium enterprises are the bedrock of Africa’s private sector and employ the vast majority of its working population. Unlocking their full potential is critical to maximizing private sector development, job creation, and broad economic growth on the continent.

Working with partner financial institutions across Africa, IFC is helping thousands of entrepreneurs and smaller businesses obtain the financing and the advisory support they need to succeed.

IFC’s Business Edge and SME Toolkit training programs have helped men and women across sub Saharan Africa gain the skills necessary to become better managers and run more successful and competitive businesses.

IFC also runs a number of programs that focus specifically on supporting women-run businesses.

3. Proactive Project Development

Many IFC-supported projects have been the first of their kind in the country, requiring new regulatory and institutional frameworks. IFC's strategy for promoting sustainable private investment in Africa therefore places emphasis on more intensive engagement with the private sector, sovereign institutions, and other parts of the World Bank Group early on in the project cycle.