Unlocking Africa's potential: South Africa investment focus

The International Finance Corporation (IFC), the private investment arm of the World Bank Group, has made significant commitments to Africa in the past fiscal year, totaling $14.2 billion. This represents a 23% increase from the previous year, making it the largest ever commitment to the continent. Claudia Conceição, Regional Director for Southern Africa at the IFC, joined CNBC Africa to discuss the organization's investment strategies and impacts in South Africa. The IFC's strategic goals in South Africa are focused on supporting inclusion, sustainable growth, reducing inequality, promoting job creation, especially among vulnerable populations such as youth and women, and aligning investments with climate change adaptation and mitigation. In addition to supporting the private sector, the IFC also provides tools and services to improve the business environment and strengthen private sector participation. Claudia highlighted a wide range of sectors and initiatives that the IFC is currently supporting in South Africa. These include investments in SMEs, gender finance, emerging farmers, fintech, sustainable infrastructure like renewable energy, urban infrastructure, crisis response measures, and more. The IFC's portfolio in South Africa over the past five years has amounted to around $5 billion, with a focus on infrastructure development, access to affordable housing, finance for small businesses, and climate finance. Claudia emphasized the importance of investing in sectors that create jobs, particularly for the youth. One of the key focus areas for the IFC in South Africa is climate finance. Since 2020, the IFC has invested and mobilized approximately $1.5 billion in green and sustainable investment finance in the country, with a strong focus on renewables, energy, and green buildings. This investment aims to stimulate economic growth and boost climate resilience in South Africa. The IFC also works with financial institutions to develop their capacity to offer climate smart products to their clients, supporting climate-related investments in the country. In conclusion, Claudia discussed the inclusive finance models that the IFC is implementing in South Africa to support the country's transition. While the conversation with CNBC Africa was cut short, Claudia expressed interest in further discussions to unpack how the IFC is supporting South Africa's transition and the inclusive finance models from the organization's perspective.