IFC Announces $ 60 Million in Africa Loans

The International Finance Corporation (IFC) announced on Monday, June 4, a $ 60 million investment to support small and medium-sized business loans in eight African countries, thereby facilitating growth and job creation in the region.
The funding will support Bank of Africa Group (BOA) loans to small and medium-sized enterprises in Burkina Faso, Ghana, Mali, Niger, Senegal, Tanzania, Togo and Madagascar.
Supported by IFC’s Women’s Opportunity Fund (WEOF), the investment will cover up to 50% of the risk with an amount equivalent to $ 120 million in loans to SMEs in these countries, including half of the expenses will be allocated to women-run businesses.
According to IFC’s Regional Director for Africa, Oumar Seydi, “expanding SME financing, especially in higher-risk markets, is an important pillar of IFC’s strategy for Africa. . This facility will allow BOA to provide more than 5,000 loans to underserved SMEs over the next five years. It could have a transformational impact on participating countries, including seven low-income countries and five fragile and conflict-affected countries. ”
According to official figures, in sub-Saharan Africa, where around 350 million new jobs will be needed over the next 20 years, SMEs account for 30-60% of gross domestic product and 67% of jobs.