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World Bank plans to increase investments in Africa

Xinhua, May 4, 2016 Adjust font size:

The World Bank's private sector arm said on Wednesday it plans to increase the level of its investments in Africa in order to promote entrepreneurship.

International Finance Corporation (IFC) Regional Director for Eastern and Southern Africa Cheikh Oumar Seydi told Xinhua in Nairobi that IFC is only constrained by the number of opportunities that are available in Africa.

"So, if we find a viable project in Africa we will finance it because we believe that our mission is very relevant in Africa. Africa has enormous needs," Seydi said on the sidelines of the Ease of Doing Business Initiative Conference.

"If we don't find success in Africa, then we can't claim any success elsewhere," Seydi said. IFC's total investment portfolio in loans and equity in Sub Sahara Africa are estimated at five billion dollars, up from 200 million dollars 12 years ago.

The director said that long term investments are approximately three billion U.S. dollars, while short term finance stands at two billion dollars.

The financial institution has holdings in a wide range of sectors including infrastructure, agri-business and financial services.

Seydi added that IFC's investments in equity in Sub Sahara Africa at any given time is between 15 and 20 percent of its total portfolio.

"We want to increase the figure because equity is critical in ensuring that entrepreneurship is encouraged," he said.

The director added that IFC is a long term investor by default and so the organization normally makes equity investments in companies and then exits once they believe its mission is over.

"In most cases, the period of investment is between six to seven years," Seydi said. Endit