The International Finance Corporation and Citigroup have signed a 1.6 billion rand ($98 million) local currency borrowing facility to expand financing access for South African businesses. The agreement, announced on April 14, 2026, is designed to strengthen the availability of rand-denominated funding for private-sector borrowers, as reported by Reuters.
The facility enables IFC to lend directly in local currency, helping companies avoid foreign exchange risks that often arise when borrowing in dollars while earning revenue in rand. Local-currency financing is seen as critical in emerging markets, where currency volatility can significantly increase repayment burdens for businesses and infrastructure projects.
According to World Bank Treasurer Jorge Familiar, the initiative reflects growing demand for more resilient financing structures in a volatile global environment. The funding has already supported IFC’s investment in the Cape Water outcome-based bond issued by FirstRand Bank, demonstrating early deployment into local capital markets.
The deal builds on a similar Kenyan shilling facility launched in 2024, signalling a scalable model for expanding local currency financing across Africa. With over $33 billion committed in local currencies globally over the past decade, the IFC’s strategy highlights a broader shift toward reducing currency mismatches and strengthening financial resilience in developing economies.
