The International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, has announced plans to expand local-currency lending across Africa to help businesses and governments reduce exposure to foreign exchange volatility.
The initiative, unveiled this week, aims to strengthen financial resilience in African markets where sharp currency fluctuations have increased debt burdens and business costs. Sérgio Pimenta, IFC Vice President for Africa, said the move reflects the institution’s commitment to fostering sustainable private-sector growth across the continent. “Access to stable local-currency financing is essential for African businesses to grow without the risks associated with currency depreciation,” Pimenta said in a statement reported by Bloomberg.
According to the IFC, the expanded program will include issuing local-currency bonds and partnering with regional banks to deepen domestic capital markets. Figures highlighted by Reuters show that IFC’s current exposure in Africa exceeds $13 billion, with growing demand for financing in key sectors such as renewable energy, manufacturing, and infrastructure.
The World Bank Group emphasized that the initiative aligns with its broader goal of supporting African economies in building financial independence, attracting investment, and cushioning against global monetary tightening.
