ABUJA, Nigeria – The International Finance Corporation (IFC), the private sector arm of the World Bank, is scaling up local-currency lending and direct investments across Africa to help domestic projects reach the size and stability required to attract major global investors.

Speaking at the Africa Financial Summit in Casablanca on Monday, IFC Managing Director Makhtar Diop said large-scale funding is needed to support long-term development. 

“What investors tell us is that when we have assets of less than a billion, it doesn’t interest them. They need a certain volume to sustain long-term resources in our markets,” he said.

As many advanced economies reduce aid and concessional lending, African countries face increasing pressure to mobilise private capital. 

Local-currency financing is seen as essential to reducing exposure to exchange rate volatility and insulating economies from external shocks.

Africa accounted for more than $15 billions of IFC’s total commitments last year, mostly in debt and trade finance. Diop noted that local-currency financing now represents around 30% of the organisation’s portfolio.

The IFC is also partnering with commercial banks to exchange dollar funding for local-currency financing lines, designed to strengthen domestic financial systems and support local businesses. Diop added that broader regional market integration — including harmonised regulatory frameworks and interconnected stock exchanges — would further build investor confidence.

“By deepening our financial markets and harmonizing investment frameworks, we can attract more long-term investors to the continent,” he said.

IFC Expands Local-Currency Loans to Boost African Investment Growth

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