Rethinking Africa's development solutions

The Regional Vice President for Africa at the International Finance Corporation, Sergio Pimenta, recently emphasized the crucial role of the private sector in driving development solutions across the continent. Speaking with CNBC Africa's Kenneth Igbomor at the Africa CEO Forum in Abidjan, Pimenta highlighted the need for more de-risking instruments to attract investors to Africa and accelerate economic growth. The theme of the forum revolved around creating companies with significant impact not only within their individual markets but across the entire African continent. Pimenta outlined the efforts of the International Finance Corporation (IFC) in supporting the growth of businesses in Africa, from small enterprises to large corporations, through capacity-building programs and financial assistance. Pimenta revealed that IFC's portfolio in Africa has reached $15 billion, reflecting a considerable acceleration in operations over recent years. With a presence in 35 countries across the continent, IFC has been actively working with local companies to provide support and promote private sector development. The institution has been focusing on de-risking investments to make opportunities in Africa more appealing and less risky for investors. One of the key areas of focus for IFC in Africa is the promotion of sectors that drive employment growth, such as agribusiness, agriculture, energy access, and finance. Pimenta stressed the importance of supporting small and medium enterprises as a means of fostering job creation and sustainable economic development. Additionally, he highlighted the significance of addressing challenges related to climate change and promoting gender equality to empower women in Africa's economy. With regards to infrastructure development, Pimenta underscored the interconnection between infrastructure and trade facilitation. He mentioned IFC's involvement in financing digital infrastructure, clean energy projects, and other capital-intensive sectors crucial for industrialization and economic growth on the continent. The Africa CEO Forum, which brings together top companies and business leaders from across Africa, provides a platform for discussing the future of the continent and fostering collaboration among key players in the private sector. Pimenta urged CEOs to prioritize Africa's potential and focus on developing regional value chains, intra-African trade, and essential infrastructure to drive economic transformation and create larger companies capable of catalyzing the overall economy. In conclusion, Pimenta expressed confidence in the private sector's pivotal role in Africa's development and reaffirmed IFC's commitment to supporting the continent's economic transformation and sustainable growth.