IFC to tap private sector for impact in West & Central Africa

The International Finance Corporation (IFC) is intensifying its efforts in West and Central Africa, despite facing challenges such as rising inflation and climate change shocks. Dahlia Khalifa, the newly appointed Regional Director for Central Africa, Liberia, Nigeria, and Sierra Leone of the IFC, highlights the opportunities presented by the young entrepreneurial population in the region. In a recent interview with CNBC Africa, Khalifa discussed the catalysts needed to de-risk investments in low-income countries in the region. With a focus on impactful investments, she emphasized the importance of job creation, improving the macroeconomic environment, boosting private sector and foreign direct investment, and reaching underserved regions to spur economic growth sustainably. Recognizing the potential of the region, Khalifa shared her strategic approach to expanding the IFC's investment and advisory portfolio. With a keen eye on sectors like renewable energy, infrastructure, agribusiness, manufacturing, and financial inclusion, Khalifa aims to unlock the untapped wealth and opportunities across the ten countries under her purview. She highlighted Nigeria as a pivotal player in the region, representing 70% of the GDP of sub-Saharan Africa, making it a focal point for investment and development initiatives. Khalifa's vision for impactful investments extends beyond financial support to include advisory services that empower local businesses, enhance productivity, and facilitate market access. Collaboration with governments to create a conducive environment for the private sector to thrive is also a key component of the IFC's strategy in the region. The IFC's commitment to fostering trade and economic growth in West and Central Africa was underscored by Khalifa's emphasis on facilitating interregional trade through investments in infrastructure, ports, logistics, and digital financial services. By supporting initiatives like trade finance and green bonds, the IFC aims to promote sustainability and resilience in the face of global economic challenges. Khalifa highlighted the significance of climate finance in the region, citing partnerships with entities like the Nigeria Exchange to advance green finance and renewable energy projects. As the world grapples with external economic shocks and food security concerns, the IFC's $6 billion global food security platform underscores its commitment to addressing vulnerabilities and promoting agribusiness growth in Africa. Khalifa's recent engagements with governments in the region have shown a shared recognition of the pivotal role of the private sector in building resilience and driving economic progress. With a robust portfolio of $2.55 billion in financing across the region, Khalifa looks to scale up investments and collaborations in Nigeria and other countries to unlock the region's economic potential and foster sustainable development. The IFC's strategic focus on impactful investments, sustainability, and collaboration with governments and the private sector signals a promising trajectory for West and Central Africa's economic growth and resilience in the face of global challenges.