BUSINESS, 88062 TELLING OUR STORY WOMEN AND DEVELOPMENTAFRICA The Power of the Private Sector 2012 Vol. 6 / Issue 4 TELLING OUR STORY 2012 Vol. 6 / Issue 4 IMPROVING THE ENCOURAGING TELECOM-MEDIA TRANSFORMING KEY INVESTMENT CLIMATE ENTREPRENEURSHIP INDUSTRIES MARKETS ANDTECHNOLOGY INTRODUCTION AFRICA AFRICA: Message from the Executive Vice President GROWTH OF IFC INVESTMENT and CEO Africa is at the forefront of development. These trends have allowed us to help the IFC OWN ACCOUNT (IN MILLIONS OF US$) $3.7 BN It is home to both some of the greatest private sector reach far more African lives. Investment Services MOBILIZATIONS (IN MILLIONS) 1,100 challenges and the greatest opportunities for But much more must still be done. It can only IFC debt, equity, quasi-equity, and TOTAL all involved in the process of raising living be done in tandem with our clients, African mobilizations last year helped finance: standards, reducing poverty, and building a governments, civil society, and others. *Projected more sustainable and inclusive world. As I come to the end of my time at IFC, I do • 59 million additional phone lines **Both Investment and Advisory This large, diverse, and fast-changing not so much look back at our recent • 6.6 million new power connections continent is one where the private sector achievements in Africa, as look ahead to the base • 500,000 students PROJECTED FINANCING, FISCAL 2012: has an especially important role to play, one it provides for my successors to use in helping that is not always fully recognized. • 218,000 new jobs $3.7 BILLION Africa meet its own development objectives. Increasing this role—whether in creating IFC will help African countries that are $2.8 BN Advisory Services jobs, improving infrastructure, expanding achieving success in private sector–led growth education and health care, or other essential A portfolio of $189 million in projects 589 reach the next level and widen the benefits to areas—has been one of the central priorities more of their people. But we must also target generating the following results of IFC, a member of the World Bank those that are farther behind in this process, in 2010-2011: Group, during my six years. $1.9 BN especially the many fragile and conflict- • $189 million in projects improving access We have substantially increased our affected states. And we must never take our 117 commitment to Africa in this time, opening to finance, the investment climate, focus off climate change, an overarching issue $1.7 BN 2,600 many new offices, hiring new, mainly local sustainable business, and public-private with future implications for nearly every sector 265 staff, and moving more decision-making to in Africa. partnerships these local markets so we can better serve The stories in this collection provide clear • $716 million in new SME loans from our clients. This has enabled us to increase evidence of the importance of well-designed partner financial institutions 2,200 our annual commitments from $700 private participation in building strong and • 56 investment climate law reforms 1,800 $700 MN million in 11 African countries six years inclusive African economies. Let us all work • $4 billion in newly facilitated private 1,400 COVER IFC investment and advisory ago to more than $3 billion in 36 countries together so that in the near future, there will $278 MN today, supported by $189 million in financing for infrastructure and health, services helped build Kenya’s cut many more such stories to tell. 26 700 flowers industry—now one of the advisory projects provided in collaboration improving services for approximately 19 country’s strongest, adding value 252 to local products for export in with our donor partners. I am especially million people between 2008 and 2011 global markets. We take that same pleased that we will likely invest more than • Environmental, social, and governance YEAR FY02 FY06 FY07 FY09 FY11 FY12* approach in many other countries $1 billion in the infrastructure sector alone and industries today, helping the practices and technologies giving private sector reduce poverty by in Africa for the first time this year. LARS H. THUNELL businesses a competitive edge COUNTRIES 24 26 26 37 36 36 creating jobs. Executive Vice President and CEO REACHED** 2 3 INTRODUCTION AFRICA IFC’S LOCAL Message from the Vice President PRESENCE African economies have long provided too basic services, including potable water, few opportunities for entrepreneurs and sanitation, and power, and at a much higher investors, yet today there is a greater sense of quality level than exists today. Recurring optimism and recognition of Africa’s famines in the Horn of Africa are reminders potential than ever before. IFC has sought to of tragedies that can befall the continent. A seize on this emerging trend to demonstrate rising middle class will demand greater the opportunities that can be found in Africa transparency and governance in the public LOCAL OFFICES and the enormous developmental impact of and private sector alike. Abidjan private sector development. For many of the challenges that have Accra The urgency of IFC’s work in Africa could vexed our continent for too long, the private hardly be more pronounced. Sub-Saharan sector offers solutions, innovation, and Addis Ababa Africa is home to the fastest growing hope. Public-private partnerships in Algiers populations in the world. By 2050 it will be infrastructure, sustainable agricultural Antananarivo home to an increasingly urbanized population investment, community-oriented natural Bamako of between 1.5 billion and 2 billion, roughly a resource development, and efficiency- Bangui doubling of today’s numbers. producing information technology are The issue before us is whether Africa can among the ways private capital can support Bujumbura further realize the promise of a dynamic, Africa’s development aspirations. Dar es Salaam youthful population, or whether the IFC has been a committed partner in Douala overwhelming burden of rapid population Africa’s recent development, and has Freetown growth and associated development positioned itself to play an even greater role REGIONAL HUBS Juba challenges will cause growth to seize and in the years to come through our recent Dakar overwhelm fragile governments. The work business growth and success. We hope IFC’s Kigali Johannesburg of IFC, highlighted through numerous experiences can inspire an even greater role Kinshasa Nairobi examples in this publication, offers a vision for a wider range of domestic and Lagos of the hopeful future we believe can become international investors to ensure greater Lusaka more widespread—one that unleashes resources and capital can be tapped for the domestic creativity and entrepreneurialism benefit of Africans. Maputo and taps global private capital to create new Monrovia opportunities for Africans. Ouagadougou Africa’s new generation of young workers Rabat and consumers in rapidly expanding Tunis economies can create a better life for many. THIERRY TANOH We are under no illusions that this will be Vice President, Sub-Saharan Africa, Latin America easy: Africans will be demanding more and the Caribbean, and Western Europe 4 5 INTRODUCTION SOUTH-SOUTH INVESTMENT CONFLICT IMPROVING THE REGIONAL IFC’S STRATEGY In helping strengthen the private sector role in Africa’s development, IFC draws on all its core functions: investing, advising, • Transforming Key Markets and Industries, through strategic initiatives in priority areas where private sector COUNTRIES INVESTMENT CLIMATE INTEGRATION IN AFRICA mobilizing capital, and managing assets. participation is currently low, beginning Combining a global knowledge of industries with a major focus on infrastructure and and markets based on more than 55 years of food and agribusiness. experience in emerging markets with the local An Integrated, presence that comes from having We work to drive increases in incomes Multicountry approximately 115 local staff at offices in 21 African countries, we put a major focus on the across Africa through sustainable, inclusive growth, building on the momentum in more Approach continent—part of our larger commitment successful countries, and in others helping within the World Bank Group to provide put some of the essential building blocks of solutions for an inclusive and sustainable world. private sector development in place: basic To be effective in a region of enormous needs, it is important for IFC to have a sound overall strategy guiding our work—helping us infrastructure (especially power and transport) to support agribusiness and manufacturing competitiveness, the ENCOURAGING TRANSFORMING ENTREPRENEURSHIP KEY MARKETS decide where to focus our efforts for improved investment climates and access to maximum impact. In determining how best to finance needed to scale up business growth, support the private sector in Africa, we thus and expanded private participation in health AND INDUSTRIES center our efforts around three broad needs: and education to serve a growing African population. • Improving the Investment Climate, Summarized in a few words, these working at both the national and regional far-reaching efforts all reflect IFC’s level to remove the barriers to greater corporate goal: private investment, forming the basis for the increased job creation and earning power that lead to poverty reduction. CREATING OPPORTUNITY WHERE IT’S NEEDED MOST. • Encouraging Entrepreneurship, building micro, small, and medium enterprise owners’ access to finance, markets, and management skills, with a special emphasis on women entrepreneurs and inclusive business at the base of the pyramid. CLIMATE CHANGE 6 7 CONTENTS PHOTO In the past, few banks were willing to lend to African private schools, key institutions serving middle- and lower-middle-class families with affordably priced tuition. Working with donor partners, IFC helps the schools obtain the commercial financing they need to expand and improve. PARTNERSHIPS Collaborating for CURRENT IFC DONOR PARTNERS African Development Bank Austria Austrian Development Bank Telling Our Story—Africa May 2012 Impact in Africa Belgium Belgium Sofinex Bill and Melinda Gates Foundation Canada Cape Verde Capespan Case Foundation Catalonia Cervejas de Mozambique IMPROVING THE TRANSFORMING KEY MARKETS Pan-African Coca-Cola INVESTMENT CLIMATE AND INDUSTRIES 40 South-South Investment Denmark A Key Source of Capital European Commission 10 Introduction 24 Introduction Finland Rwanda See videos on many of these stories First Quantum Mining and Operations Pan-African in the online version of Telling Our Flanders 12 Results of Reform IFC works with governments, businesses, simplifying regulations and increasing 26 Infrastructure Story—available at ifc.org. France Clears Signs of Impact multilateral organizations, and foundations transparency, and grow its private sector. IFC Iceland An IFC Strategic Priority to foster innovative donor partnerships to is also helping African countries develop Instok West and Central Africa Pan-African reduce poverty and improve people’s lives. domestic financial markets, promote Ireland 14 OHADA 28 Agribusiness Our collaboration emphasizes the power of environmental sustainability, and expand Islamic Development Bank Israel Region-Wide Reform A Driver of Growth long-term partnerships, maintains a focus on health and water services. Japan results measurement and efficiency, and Our teams are bringing global experience provides appropriate visibility for to countries across sub-Saharan Africa, with Kansanshi Mining Burundi donor partners. an increasing focus on the poorest and those Lonmin 30 Conflict Countries Lumwana Mining Company Our donor partners are vital in helping us affected by conflict. Many African ENCOURAGING Finding the Levers of Change Luxembourg deliver greater development impact. The governments are today calling for inclusive, MasterCard Foundation ENTREPRENEURSHIP financial support they provide not only market-based solutions to bring social and Millennium Challenge Account Pan-African leverages IFC’s own contributions to advisory economic benefits to growing populations. Millennium Challenge Corporation 16 Introduction 32 Regional Integration services but also enhances the impact of our IFC investment and advisory services are Mopani Copper Mines Connecting Countries and Markets MOZAL investment operations through strengthened responding to those calls, helping pave the Côte d’Ivoire Pan-African Netherlands collaboration and shared mutual priorities. way for sustainable private sector Newmont Ghana Gold Limited 18 Microfinance 34 Climate Change IFC’s partnership with our donors often development across Africa. Nigerian National Petroleum Company Rapid Response A Cross-Cutting Challenge extends beyond funding to a relationship based In Africa, the main funding vehicle for Norway on mutual understanding, expertise, and advisory services is the Private Enterprise Petroleum Technology Development Fund Nigeria Pan-African knowledge sharing. We foster this by convening Partnership Africa (PEP Africa). Since 2005, Portugal 20 SME Finance 36 Health donors around thematic issues such as climate IFC PEP Africa and its partners have Sasol Petroleum LDA The Search for Scale Private Sector Solutions South Africa change and food security. In so doing, we strive provided more than $202.6 million in Spain to be thought leaders and to stimulate program support toward advisory services Sweden Ghana Pan-African coordinated action. that promote private sector development in Switzerland 22 Trade Finance 38 Capital Market Development IFC advisory services provide advice, Africa. At the end of February 2012, IFC United Kingdom The Missing Link Tapping New Funding Sources problem solving, training, and support to help PEP Africa was managing 113 projects with a United States Africa develop large infrastructure projects, portfolio value of $180.9 million in 34 Wallonia build a positive investment climate by countries across Africa. 8 9 IMPROVING THE INVESTMENT CLIMATE SOUTH L In the five years before its • Supporting the South Sudan ike other parts of the developing world, This support is driven by three broad independence in 2011, an IFC/World Investment Authority, a new agency Africa still has many barriers that block strategic priorities: Bank team helped South Sudan set the helping attract potential investors and investment— tangling entrepreneurs in SUDAN conditions for business growth— offering them the clear, predictable rules red tape, keeping them from creating jobs. • Fostering enterprise creation and especially for the SMEs that are so critical they need to thrive. Removing them one by one is an essential growth by reducing barriers to business to job creation and improved living step on the road to stronger private sector entry, expansion, and exit standards. The program’s current focus is on development. Supported by Denmark, Ireland, Japan, further investment climate reforms, SME This is a core focus area for IFC. Working • Facilitating international trade and the Netherlands, Norway, and the U.K., training and capacity building, and access in close collaboration with the World Bank investment by improving trade logistics the program’s results included: to finance, supported by the Dutch and and our donor partners, we help African systems, investment policies and South Sudanese governments with governments enact pro-business reforms regulations, and supporting more • Helping create a comprehensive additional funding from Denmark, that foster open and competitive markets, effective and transparent business framework for business law, with Ireland, Norway and the U.S. “Nations clearing a path for the growth of healthier, taxation mechanisms six laws passed to date and five more are built by the private sector,” South more vibrant local business communities. in process Sudan Vice President Riek Machar Teny Our ongoing support helps Africa’s reform • Unlocking sustainable investment in said at its launch. leaders build on their good progress to date, key industries in fragile and conflict- • Simplifying business registration, while also igniting the process in those that affected states allowing more than 12,000 businesses to have so far lagged behind. join the formal sector. 10 RWANDA RESULTS Rwanda’s reforms set a good example Landlocked and heavily reliant on for others to follow. imports, Rwanda is seeing immediate It is a small, landlocked country that has benefits from the moves, especially the OF REFORM made great strides, but continues to be one improved trade logistics. of the world’s poorest. To help it move “Due to the reforms, everything is faster farther ahead on the road to inclusive and the paperwork reduced dramatically,” Clear Signs of Impact growth, an IFC–World Bank team has says Bipin Patel, owner of a local glass been helping its forward-looking govern- business. “We can now clear our goods the ment simplify the investment climate since same day they arrive at the border.” 2008, leading to: “I don’t know how many times our trucks used to be stuck at the border Removing key obstacles to • Easier business licensing through because they arrived after 5 p.m.,” adds business growth. reforms that reduce the time needed to importer John Rusagarais, whose employer start a business from 16 days to 3, East Africa Breweries operates from plants cutting costs by 95 percent in Uganda and Kenya. “But now the borders are open 16 hours a day. Doing • Simpler taxation, with improvements trade in and out of Rwanda is certainly that will cut the time needed to obtain faster and less costly than it was a few tax clearance certificates nearly in half years ago.” Even those who do not trade notice the • Quicker building permits via new improvement. Garage business owner A recent independent evaluation found says Clare Akamanzi of the Rwandan PHOTOS IFC-supported building regulations and a one-stop Mouhamud Kwitanda recalls losing the program had resulted in: Development Board. investment climate reforms help pave the way for Rwanda’s housing registration center, speeding up valuable time while his construction permit • $5.1 million in time and cost savings to The program was developed in emerging entrepreneurs. the process of obtaining construction application sat unanswered for a year, then the private sector partnership with Denmark, the European permits was rejected without explanation. • 8,000 new and formalized enterprises Union, France, Ireland, Norway, and “Following the reforms, I resubmitted my • 16,250 new jobs created Trademark East Africa. Its next stage will • Faster trade, by reducing the number application and got my construction permit • $51 million in new investment generated target longer-term strategic initiatives such of documents needed for cross-border issued within just one month,” he says. as the development of special economic trading with Uganda, Burundi, and the “The achievements have given a lot of zones in Kigali. Democratic Republic of Congo motivation and have become a trigger for the mindset of reforming all the time,” 12 IMPROVING THE INVESTMENT CLIMATE 13 WEST AND CENTRAL AFRICA NIGER BURKINA FASO MALI CHAD SENEGAL CAMEROON OHADA Region-Wide Reform Some of the poorest countries in the world are those comprising the region of West Africa, where outdated business laws and procedures are among the key One of the fundamental premises of OHADA is the power of the private citizen to fuel prosperity. “SMEs are the heart of the African economy. It is GUINEA- CENTRAL AFRICAN REPUBLIC impediments to prosperity. But with the essential that everything is done to BISSAU help of the World Bank Group, the French encourage them to formalize, so that government, the Investment Climate small entrepreneurs can then turn to Facility for Africa, and other donor banks for loans,” says Togo’s Minister of GUINEA partners, OHADA—the Organization for Justice, M. Biossey Kokou Tozoun. Updating business law the Harmonization of Business Law in The new rules—updating the General CÔTE in 16 countries. Africa—is now making great strides toward Commercial Law and the Law on Secured D’IVOIRE removing those barriers to business. Transactions—now allow lending banks to OHADA is an association of 16 member accept a much wider range of assets as countries (soon to be joined by the collateral, rather than just real estate, to EQUATORIAL REPUBLIC GUINEA Democratic Republic of Congo), sharing a which most people lack formal title. Prior OF THE set of nine laws designed to regulate to the reform, half of all African private TOGO CONGO business in the region. Over the last four companies seeking loans were blocked by years, the World Bank Group has lent its such constraints. The revised law will hand toward helping OHADA upgrade mean cheaper loans and easier credit, those laws to better serve West Africa’s spurring new businesses and expanding BENIN private business owners and attract more national economies. domestic and foreign investment. Under the new and leaner legal regime, The efforts have already begun to bear entrepreneurs, especially small business GABON fruit. In December 2010, OHADA enacted two crucial revisions to its laws owners, will more easily register and operate their businesses. Women have the OHADA: MULTICOUNTRY DEMOCRATIC REPUBLIC and adopted a strategic plan to modernize most to gain from this new status, BUSINESS LAW REFORM OF CONGO its business procedures through electronic especially in rural and semi-urban areas, MEMBERSHIP technology. With more reforms soon on as it will ease their access to formal credit PENDING the way, the prospects for better business and social benefits. and investments in West Africa have suddenly taken a welcome turn. 14 IMPROVING THE INVESTMENT CLIMATE 15 LIBERIA ENCOURAGING ENTREPRENEURSHIP T Alfred Duwor has taken out three loans he private sector drives job creation, • Microfinance: investments in 23 from Access Bank Liberia, his country’s productivity gains, and innovation in institutions that have together enabled 1.5 first commercial microfinance institution, Africa and throughout the developing million people to open saving accounts with since it opened in 2009, using the money world. It accounts for roughly 90 percent an average balance of $237, while also to expand his small grocery store and buy of employment, creating the jobs and tax making small loans to 350,000 borrowers four vehicles he leases to clients. He has revenues that set the foundation for hired 10 more workers in this time. poverty reduction. • SME Finance: IFC’s Africa MSME Access Bank targets rising small These jobs are created by Finance program is a combined business owners like Alfred. It typically entrepreneurs—bold, risk-taking business investment/advisory effort in 15 countries processes their loans in just 48 hours with owners with vision for a much-needed new that typically helps banks increase their flexible collateral terms—unlike the larger product or service, and a plan for bringing SME lending by at least 30 percent over Liberian banks that could take weeks or it to market, then scaling it up over time. three years, then continue to grow months, if they served them at all. Meeting But a lack of access to finance, market profitably on their own, and providing a great need at the base of the pyramid, it information, and management training too trade finance guarantees to support SMEs’ now serves more than 6,000 clients. often holds them back. To reach their full import/export transactions. IFC is a founding shareholder, part of potential, they need special support. our larger relationship with Germany’s IFC helps fill these gaps as part of our • Management Training: partnering with Access Holding that has also led to the larger work carrying out the G20’s global Austria, Canada, the Netherlands, creation of similar banks in Madagascar, financial inclusion agenda. In Africa, our Portugal, and Switzerland to offer our Nigeria, and Tanzania. Working with a focus includes: Business Edge classroom courses and network of microfinance holding Web-based SME Toolkit in 23 countries companies, we help introduce commercial microfinance across Africa, fueling the growth of local entrepreneurship. 16 CÔTE D’IVOIRE MICROFINANCE Rapid Response Commercial microfinance is an essential tool in the fight against poverty, providing the customized savings and loan instruments that small-scale the control of rival factions, Côte d’Ivoire had long been cut off from the worldwide revolution in expanding access to finance for the poor. But as one of West Africa’s entrepreneurs need to build their traditional commercial powers, it has great businesses from the bottom up. potential to bounce back if its entrepreneurs It may be needed the most in African can find the financing they need. countries just emerging from conflict. To help the private sector meet this need, Their crisis conditions push most private IFC has invested in a number of top-caliber Financing small-scale sector activity into the informal sector, international microfinance bank holding entrepreneurs helps a leaving mainstream commercial banks companies: MicroCred and Advans of country bounce back in its with a narrower customer base than usual France, as well as ProCredit and Access first year after conflict. and creating new opportunities for those Holding of Germany, and ACCION and specializing in non-collateralized lending FINCA of the U.S. to the poor. The faster that world-class Using standard business practices and IT microfinance providers can enter these systems across their various micro-banks, war-torn markets, the greater the role they they are typically able to launch and scale can play in supporting lasting recovery. up much faster than independently owned With IFC’s help, Côte d’Ivoire now has institutions. IFC generally invests at the two of these institutions operating just a holding company level and often in their year after the April 2011 end of its civil individual banks as well, frequently also war, each on its way to having 100,000 providing advisory services. MicroCred PHOTOS Soon after peace returned to Côte d’Ivoire in 2011, IFC client MicroCred lent Salifou Bizo depositors and 25,000 borrowers. debuted a few months before the dramatic (above) $590 to expand his small vegetable stand Affiliated with two major international events of April 2011 that drove more than and begin selling chickens as well. The extra income microfinance investor/operator networks, 370,000 people out of Abidjan, and now it generated allowed him to plan further moves—and get medical treatment for his ailing brother. Small MicroCred and Advans, they are now the has nearly 12,000 clients. Advans soon loans from MicroCred and another microfinance clear leaders in a local market that was followed, opening its doors in March 2012. institution, Advans, help fuel the entrepreneurial growth the country needs to recover from years of otherwise showing few signs of being able The two IFC clients are now well on their conflict. The first borrower at Advans, Yacouba Sore, to meet its enormous demand. way to opening up new avenues of finance has 11 children. Taking out a $600 loan to build a Troubled since a contested presidential for Ivorian entrepreneurs who hold the key growing food retail business after years of selling bottles providing his family with a helpful new source election in 2000 that left it divided under to job creation at the base of the pyramid. of income. 18 ENCOURAGING ENTREPRENEURSHIP 19 NIGERIA RIGHT “Helping people achieve optimal health and vitality is our mission, and we need to be in every city in Nigeria,” says Nigerian pharmacy owner Bukky George. “We guarantee absolute quality and original products, and generations—mothers, grandmas, children—shop here because they know what they are getting.” SME Bukky George makes things happen. A true entrepreneur, she sees business prospects in Nigeria that others miss— market in Nigeria will be key in achieving our retail and SME goals,” Access Bank CEO Aigboje Aig-Imoukhuede said at FINANCE The Search and takes risks to turn them into reality. Investors willing to back high-growth small and medium enterprises (SMEs) like hers early on share in the rewards. the time. Access Bank made the loan, beginning a relationship that worked well for everyone. It now has a well-performing This is good for development overall, portfolio of almost $40 million in loans to for Scale leading to extensive formal sector job women-owned SMEs and is a key partner creation—raising incomes and of IFC, which through its Women in improving lives. Business program alone has provided In 2006, Bukky had just one small new loans to 2,200 such firms and trained With increased access asset—a single Health Plus pharmacy in 3,000 women entrepreneurs. to finance and training, Lagos that she wanted to make the start In Nigeria, Access Bank now lends to women entrepreneurs are of a top-quality national chain. Nigerians, more than 550 women-owned SMEs— key forces of development. she felt, deserved the same easy access to up from 60 at the time of the start of retail health care products that others in its program with IFC, which helped it higher-income countries had, and would build a new sales and marketing strategy pay a fair price for it. targeted at women, set up women- Its client Health Plus, in turn, now has benefited from the expertise provided by IFC is co-leading new work on Within a year she had added three new focused teams in its three priority cities six outlets employing 77 workers, roughly IFC’s Women in Business program, which increasing access to finance for women locations and needed additional financing. in Nigeria, and join the Global Banking half of them women. It has received has now been integrated into the Africa entrepreneurs. A report that maps the size But she had insufficient cash flow and Alliance for Women, an IFC-supported additional support from GroFin, a MSME Finance program and helps of the women’s market and analyzes the collateral, and most local banks would not membership organization of financial $256 million IFC-backed investment banks reach women entrepreneurs in obstacles women entrepreneurs face in lend to new women-owned firms. institutions committed to the growth vehicle in Johannesburg for rising African several countries. growing their businesses was endorsed at Then she met Access Bank, a fast- of women in business worldwide. The SMEs needing $50,000 to $1 million at Such initiatives help local financial the G20 Summit in November in France rising Nigerian lender that had just winner of the 2011 Financial Times/IFC a time to reach the next level. institutions see the profit potential in with a set of recommendations to be received a $15 million IFC line of credit Sustainable Bank of the Year-Africa The program provided models and financing women entrepreneurs. This is endorsed by member countries. to increase its lending to women-owned and the Middle East award, Access Bank experiences that could eventually be built why the G20 has asked IFC to co-lead businesses, which helped differentiate has integrated the women in business into the flagship Africa MSME Finance a new Global Partnership for Financial itself from other financial institutions. approach as part of its expansion strategy program, now supporting banks across the Inclusion to increase access to finance— “Successfully reaching the women’s in Africa. region. The Access Bank transaction not just in Africa, but throughout the developing world. 20 ENCOURAGING ENTREPRENEURSHIP 21 GHANA RIGHT Wholesale Assistant Lydia Boatemaa processes new orders at Ghana’s Tobinco Pharmaceuticals, a key supplier of medicine that fights malaria and other deadly diseases. An IFC trade finance guarantee helped Tobinco import new equipment from India, allowing it to start producing locally—and hire 150 more workers TRADE Ghana is growing fast, showing the “When you are in Africa, no one wants to changing face of emerging Africa. work with you without a confirmed letter of The economy is growing by more than 7 credit,” says Ashu Gulati, group finance FINANCE percent a year, creating jobs and reducing director of a Tanzanian firm, Synargé. poverty. The progress increases the IFC helps fills just this gap. With a demand for affordable, modern health care multibillion-dollar capital base and AAA products—including medication to protect credit rating, we could guarantee Tobinco’s The Missing Link against one of Africa’s most dangerous letter of credit from Merchant Bank of diseases, malaria. Ghana. This immediately made the UNICEF research shows that Ghanaian proposition more interesting to big banks children who suffer repeated bouts of overseas. The Indian exporter’s lender, malaria may have 60 percent of their Citibank, came on board once it saw IFC’s Importing Pharmaceutical Instrument: Letter of Credit IFC guarantees help foreign banks take schooling impaired, if they survive. Tragically, some 20,000 a year do not. Increasing access to antimalarial medicine, involvement, allowing the project to proceed. Confirmation of the letter of credit allowed Tobinco to start building the new Equipment: IFC’s Role IFC IFC Cover: 100% Tenor: 12 months bed nets, and other modern prevention manufacturing plant that will create 150 more African risk. and treatment methods is an important local jobs, bringing its total to 650. national priority. Since its beginning in 2005, IFC’s Global 100% Accra’s Tobinco Pharmaceuticals is a top Trade Finance Program has supported more Guarantee distributor of antimalarial drugs and other than $21 billion in trade in the developing pharmaceuticals, supplying hospitals and world, most of it with SMEs in the lowest- pharmacies across the country. Since its income countries. The largest share of this founding 10 years ago, the firm has sold amount, $6.4 billion, has been for guarantees imported drugs. But with Ghanaian of more than 4,200 transactions in Africa. IMPORTER Payment ISSUING BANK Payment CONFIRMING Payment EXPORTER authorities now insisting on higher standards, some of its imports have begun To increase the impact, since 2006 IFC has also trained more than 1,300 African bankers Tobinco Pharmaceuticals Requests Merchant Bank of Ghana Issues BANK Confirms Equipment Manufacturer, Letter of Letter of Citibank, USA Letter of failing the test, causing supply disruptions and more than 200 local SMEs in ways to India and delays to key clients. As a result, it maximize the use of trade finance. Provided Credit Credit Credit planned to begin manufacturing locally, in partnership with Japan, Switzerland, identifying the necessary equipment to Ireland, the Netherlands, Sweden, and Israel, import from India. the training helps bankers better understand Issues Letter of Credit in Favor of Exporter But when it went to its local bank, their smaller-scale clients’ export-import Tobinco encountered the same needs and respond accordingly. disappointing news faced by many other Goods: Pharmaceutical Manufacturing Machinery ($900,000) SMEs across Africa. 22 ENCOURAGING ENTREPRENEURSHIP 23 TRANSFORMING KEY MARKETS AND INDUSTRIES GHANA O Ghana’s Jubilee offshore oil field is a Bondzie (above), a production technician ur strategy is to target high-priority The key focus areas under this landmark project, helping transform one at Tullow’s offshore oil rig. segments of African economies, where approach include: of West Africa’s strongest economies and Since our first involvement in 2009, our work can have the highest impact. take it to the next level of development. IFC has also played a valuable role in Grouping individual projects into broader • Infrastructure During peak production the field is helping ensure that the project has in programs with concrete goals in mind • Agribusiness expected to contribute $1 billion in new place the proper social and environmental allows us to measure results, learn as we go, • Conflict-Affected States annual tax revenues, opening up a new safeguards and management plans and and share the resulting knowledge widely • Regional Integration source of government funding for health, that it will promote governance and with others. • Climate Change education, and other priority social needs, revenue transparency in Ghana’s growing Often our advisory work comes first in • Setting Standards (Environmental, while also creating employment, oil and gas sector. Bringing Ghana into the sequence, laying the groundwork for Social, and Governance) stimulating the demand for local goods the Extractive Industries Transparency subsequent investments and knowledge- • Health and services, and developing associated Initiative, a global effort to help countries sharing efforts. In special cases with either • Education natural gas that will be an important avoid the “resource curse” of oil, gas, and especially high risk or social impact, we can • Capital Market Development domestic energy. mining revenue mismanagement, is one blend in concessional funds from IDA or • South-South Investment IFC provided a $100 million loan to of the ways we are pursuing this other development partners. Kosmos Energy of the U.S. and a $165 important goal. million loan to Tullow Oil of the U.K., two of the partners developing the Jubilee field. The investment is creating jobs for skilled Ghanaian workers like Richard 24 PAN-AFRICAN INFRASTRUCTURE Even as crews put the finishing touches private sector in essential public services, on newly built roads, ports, and power and on how to restructure state-owned stations across Africa, the continent’s enterprises. IFC’s PPP support between An IFC Strategic Priority people and its growing economies are fiscal years 2008 and 2011 is expected to demanding more. facilitate more than $4 billion in private Africa’s continued reform programs financing for infrastructure and health, and IFC’s strategy are coming together at and to provide improved services to an unprecedented scale in 2012, when approximately 19 million people. IFC will for the first time invest and Recent highlights of the way IFC is mobilize more than $1 billion in private helping Africa build its infrastructure infrastructure in Africa. This is up from include: just $200 million five years ago, making IFC a leading investor in the sector. • Senegal: IFC was the global Exceeding $1 billion. Our focus is on the building blocks of coordinator of financing for a € 230 any modern economy: ports, railways, million ($302 million) toll road project, telecoms, and power, including which, when complete in 2013, will run renewable energy. 25 km from Diamniadio to Dakar, A shortage of funding sinks some cutting travel time to and from the development in Africa, but a more serious capital city from two hours to less than hurdle is a lack of know-how to develop 30 minutes. France’s Eiffage won the and guide infrastructure projects so project’s World Bank–supported 30-year governments can benefit from private concession, for which IFC provided sector expertise, management, and €22.5 million ($30 million) in long-term • Cameroon: Since 2001, when IFC natural gas reserves. In addition to PHOTOS A new PPP toll road (above) in Dakar cuts travel times and eases finance. debt alongside € 40 million ($52.3 advised the government in privatizing its providing €60 million ($86 million) in congestion in Senegal’s capital. In This is where IFC is leading the way. million) from the African Development power sector, new owner-operator AES direct financing to the €263 million Cameroon, privatized utility AES Developing deals requires time, effort, Bank, the West African Development Sonel has invested more than $1 billion ($360 million) project, IFC coordinated a Sonel has added nearly 340,000 new connections since 2001. The projects experience, and the ability get the right Bank, and local bank CBAO. connecting close to 340,000 people to its larger loan package from partner are part of IFC’s strong commitment balance between private and public system. The most recent transaction was institutions, and worked with the World to helping the private sector improve Africa’s infrastructure. interests. IFC has successfully advised the 2011 financing for the company’s 216 Bank on an IDA partial risk guarantee to African governments, including local MW Kribi project, the first commercial facilitate Cameroon’s first long-term, local municipalities, on ways to engage the use of Cameroon’s substantial offshore currency loan for infrastructure. 26 TRANSFORMING KEY MARKETS AND INDUSTRIES 27 PAN-AFRICAN AGRIBUSINESS A Driver of Growth Africa has 60 percent of the world’s remaining arable land and millions of dedicated farmers. With new tools, infrastructure, and know-how from the metric tons, generating about $17 million in export revenues and creating 2,000 jobs. The financing is complemented by hands-on technical support being private sector, they can unlock more of the provided with the aid of TechnoServe, a continent’s great agricultural potential. U.S.-based NGO bringing business Our approach is to focus on increasing solutions to rural poverty. rural incomes, improving food security, We also support Ethiopian farmers and diversifying exports. We do this by through IFC’s Warehouse Receipts Making better use of addressing investment climate and policy initiative, which opens new access to Africa’s agricultural bounty. constraints in collaboration with the finance for farmers by leveraging their World Bank, then using our investment own production. Warehouse financing is a and advisory services to help clients lending technique that allows farmers upgrade their supply chains and expand access to finance by pledging warehouse mechanisms for crop finance and risk receipts issued by the Ethiopia management. Commodity Exchange. The receipts are In Ethiopia, the focus is on coffee—the issued by the warehouse operator when world’s favorite pick-me-up and the the commodities are stored, becoming an country’s largest export. But many instrument that can be used as a form of Ethiopian coffee farmers struggle to take portable collateral to request a loan from Rising regional players are emerging The initiatives are part of our broader PHOTOS Building the productivity of Ethiopia’s coffee industry— full advantage of their valuable crop. a bank. This approach is especially across the continent. In Tanzania, our work in the industry that includes farmers, processors, traders, and Increasing their productivity helps them beneficial to farmers and SMEs, which client Bakhresa Group has expanded the managing the private sector window of beyond—is part of IFC’s extensive involvement in the African climb the value chain, raising incomes are often unable to secure their borrowing national milling company it purchased in a the G20’s Global Agriculture and Food agribusiness sector. and supporting new sources of growth in requirements owing to lack of sufficient privatization, and now also produces flour Security Program, a World Bank/IFC the rural economy. conventional loan collateral. in Malawi that is sold both domestically collaboration designed to channel donor A $10 million IFC risk-sharing facility and abroad. We are also helping strengthen funding to public and private initiatives is helping Ethiopia’s NIB International Zambia’s Zambeef, a local agribusiness that will improve governance, Bank make new loans to local leader that is now expanding into other productivity, and competitiveness in cooperatives. These have helped member countries such as Nigeria. agribusiness in Africa and other farmers increase the volume of coffee developing regions. The Netherlands, they process from about 460 to 4,000 Canada, and the U.S. are our donor partners in the initiative. 28 TRANSFORMING KEY MARKETS AND INDUSTRIES 29 BURUNDI CONFLICT The Hilton does not yet exist in Bujumbura. But it is already a landmark. Ask anyone for directions downtown, resolving insolvency. Increased investor confidence is leading business seekers to Bujumbura, where the DoubleTree by COUNTRIES Finding the Levers and they respond “Get to the Hilton, then turn…” The “Opening Soon” banner towers over the entrance to the soon-to-be-converted Waterfront Hotel, a Hilton will provide them international standard hotel rooms and conference facilities. “The DoubleTree’s key location in building that is worn down, but not out. Bujumbura’s central business district, of Change Resurrecting the Waterfront (formerly along with Hilton’s quality guarantee, the Novotel) is Opulent B Ltd, a hotel will build confidence among business management company in which IFC is travelers and also help place Burundi on investing $5.5 million. The financing will a par with other commercial hubs in The example of Burundi. support the renovation and rebranding of East Africa,” said Ayaz Ali Jivraj, the Waterfront Hotel into a 4-star, Director of Opulent. 138-room DoubleTree Hotel by Hilton, Burundi is currently the only member employing 155 staff. Opulent is one of the of the East African Community without region’s emerging hotel operators, having an international business hotel. Having previously developed DoubleTree by one is likely to have major multiplier Hilton hotels in Dar es Salaam and effects on the economy, generating Zanzibar in Tanzania. foreign currency and tax revenue, and The investors have chosen their timing providing a new market for local farmers wisely. Recovering from a long history of and service providers. Hotel employees fragile political conditions, Burundi receive training to build their skills and IFC, a long-time supporter of hotels, Despite ongoing challenges with PHOTOS Signaling the recent improvements in Burundi’s ranked the seventh most improved earning power in management, customer has witnessed the positive trends of such conflict and governance, IFC invested investment climate, IFC has economy in the world in the IFC/World service, language, and culinary arts, with transactions over time. Since 1956, IFC $172 million in 18 fragile and conflict- just financed the renovation of Bank Doing Business 2012 report. With the hotel refurbishment signaling to the has invested more than $2.5 billion in affected states in Africa. With support a leading hotel in the capital, Bujumbura. It is soon to be support from the World Bank Group’s international community that Burundi is 251 hotel projects —100 of them in from our donor partners, we also manage rebranded as part of Hilton’s Investment Climate team, government open for investment. Africa. Along with increasing investment a Conflict-Affected States in Africa DoubleTree chain. authorities have implemented reforms in in local economies, IFC’s hotel projects in initiative supporting strategy develop- areas such as protecting investors, paying Africa have helped boost the tourism ment, conflict analysis, and program taxes, getting construction permits, and sector, generated jobs, and contributed to design and funding in critical areas such economic diversification and growth. as investment climate reform. 30 TRANSFORMING KEY MARKETS AND INDUSTRIES 31 PAN-AFRICAN PHOTOS By supporting multicountry bank holding companies and privately financed infrastructure projects, IFC helps address one of Africa’s biggest needs: regional integration. REGIONAL Strengthening the connections between African countries is good for development in many ways. To begin many European banks pull back from Africa, our $80 million loan and $25 million equity stake serves as a stamp of INTEGRATION Connecting Countries with, it expands markets’ size, builds their production and trade capacity, and increases their attraction to both foreign and local investors. approval, helping it attract additional private capital so it can serve many more cities in Africa as well as India, China, and the Middle East. As policymakers build integration in In ground transport, IFC also advised and Markets key regional blocs like ECOWAS, in the Kenyan government’s privatization COMESA, SADC, and the East African of the 2,352-km rail line linking Kenya Community, IFC is doing its part with and Uganda, then in 2011 invested trend-setting transactions—investing in alongside the new private ownership Upgraded infrastructure and new infrastructure and financial systems group led by Egyptian-headquartered financial institutions bring that improve the flow of goods, services, private equity house Citadel Capital that cross-border benefits. and capital. With our support, private is bringing it back to life. Turnaround sponsors are building transport links times for railcars between East Africa’s and multicountry bank holding biggest port, Mombasa, and Nairobi have companies that make it easier and less already improved by as much as 30 expensive to do cross-border business percent as a result. around the continent. For similar efficiency gains in With our backing, one of Africa’s shipping, we are financing a private largest airlines, Kenya Airways, is consortium’s new €350 ($406 million) launching a $3.6 billion investment container terminal concession in Lomé, These stronger infrastructure links Our $75 million multicountry loan In addition to these and other program to double its fleet of aircraft Togo, one of West Africa’s few deepwater complement today’s stronger cross-border facility is also helping South Africa’s investments, IFC also provides advisory and add 31 new destinations. The ports. This will increase the flow of banking platforms. Since our initial Standard Bank Group build its services to support regional integration Kenyan government’s IFC-supported imports and exports across coastal West transaction with its Ghana subsidiary 19 subsidiaries across the continent, just as in Africa—including helping OHADA 1995 privatization of this once- Africa and into landlocked Mali, Niger, years ago, repeated IFC investments and other IFC investments are doing at the upgrade laws to better serve West downtrodden state airline brought in and Burkina Faso to the north. advice have helped Lomé-based Ecobank sub-regional level with clients such as Africa’s private business owners and KLM as controlling investor, turning Transnational Incorporated become a ABC Holdings (Southern and Eastern attract more domestic and foreign Kenya Airways into the strong, leading pan-African player, having Africa), Diamond Trust Bank (East investment (see p. 14 ). profitable performer it is today. Now, as subsidiaries in more African countries Africa), and Bank of Africa (East and than any other bank. West Africa). 32 TRANSFORMING KEY MARKETS AND INDUSTRIES 33 PAN-AFRICAN PHOTO New IFC client SunEdison has just used our support to build one of Europe’s largest utility-scale solar plants, the 60.4 MWp Karadzahalovo in Bulgaria. We will now be working them to develop similar projects in South Africa and other countries. CLIMATE Helping the private sector meet the challenge of climate change is a top priority for IFC. they typically use. Our market research and quality assurance support has helped private firms bring 25 affordably CHANGE A Cross-Cutting Last year we financed $1.7 billion of climate-friendly projects worldwide, much of it involving commercial use of wind, solar, geothermal and other forms priced solar lighting products to market in Kenya, Ghana, Tanzania, Ethiopia, Senegal, and Mali. While providing improved lighting services with signifi- of renewable energy. In time we will cant cost savings to over 1.5 million Challenge help build a first wave of utility-scale users, these commercially provided clean energy projects in Africa, lanterns have so far avoided 50,000 investing in milestone projects in metric tons of CO2 emissions—the Starting with grassroots renewables, sustainable forestry, and equivalent of building a new 20 MW solutions—in lighting other industries supporting the move to wind power plant. and cooking. a low-carbon economy. Priced between $15 and $100 and But with on-grid renewables still in lasting up to 10 years, the solar lamps the earliest stages in Africa, we are also cost much less than a year’s supply of taking other approaches—including kerosene. But many users cannot pay helping the private sector build climate their full cost upfront. Building the resilience and adapt to climate change, market requires new forms of consumer with a focus on agriculture, land use, financing for buyers earning $1 a day. and water use management, while Our Kenyan microfinance client Faulu expanding access to modern energy launched a new energy division for this one, which I did. Now I don’t worry. been too costly for low-income buyers. PHOTOS As the market for utility- scale renewable energy projects services and reducing the greenhouse purpose, distributing more than 3,000 The old kerosene lantern was sent Until now. develops in Africa, IFC helps gas emissions of two essential everyday solar products in the last two years. packing and my children enjoy reading Backed by a $2 million equity offset greenhouse gas emissions by helping introduce affordable activities, lighting and cooking. “I took the lamp against my husband’s for more hours.” investment from the IFC InfraVentures new commercial products in solar More than 500,000 solar lamps and wishes and gave it to my children to use Kerosene is also the primary cooking fund, Kenya’s Premier Gas began selling lighting and gas cooking. lanterns have now been sold through the for their studies because kerosene was fuel for more than 3 million households small LPG cylinders in February 2012 IFC/World Bank Lighting Africa more expensive,” says Chepkoech, a in Nairobi alone, even though its fumes for just $24. Refills can be obtained for initiative, which offers those without woman in the Rift Valley Province town pollute the air and cause acute respira- less than $1 from mobile dispensers in electricity a clean, green alternative to of Kitale. “When he learned about the tory diseases. Liquefied petroleum gas some of Nairobi’s poorest areas, giving the smoky and dangerous kerosene lights product he advised me to go for another (LPG) is a much safer option and cuts buyers an easy, affordable way to cooking times in half, but has usually upgrade their cooking standards. 34 TRANSFORMING KEY MARKETS AND INDUSTRIES 35 PAN-AFRICAN RIGHT Expanded with investment from the IFC-supported Health in Africa fund, Nairobi Women’s Hospital improves health care for women in the Kenyan capital. HEALTH Private Sector How best to meet the health needs of a country struggling with one of the world’s heaviest caseloads of HIV and AIDS? Lesotho, a tiny mountain kingdom of the landmark project, which called for the construction of a world-class hospital and three filter clinics in Maseru, Leso- tho’s capital. surrounded by South Africa, turned to the To help realize the project, the World Solutions private sector to help transform its Bank Group provided technical assis- burdened health service and provide its tance, and the Global Partnership for population with modern, affordable, and Output-Based Aid extended a grant of reliable care. $6.25 million. Innovative approaches on IFC helped make it possible, as part of a When the new, 425-bed Queen the health care front. broader commitment to helping extend ’Mamohato Memorial Hospital was the reach of private health care in Africa. inaugurated in October 2011, it trans- For years, Lesotho made do with an formed health services in the country aging main referral hospital that lacked at a stroke. specialized equipment. The country’s The hospital and clinics—representing health service faced numerous cases of $100 million in new investment—provide tuberculosis and HIV and AIDS. a full range of services, from basic care to “We looked at what the government was dental and emergency facilities. More paying to run health services, and what we patients are being treated and they are were receiving,” said Lesotho’s Finance receiving better care —all without Minister, Timothy Thahane. “We then increasing public sector expenditures. went to the private sector and asked, The Lesotho Hospital PPP is evidence ‘What can we get for that amount?’” that a low-income country can undertake IFC places a high priority on supporting to $1 billion over five years in investment PHOTOS Nurse Mabothile Poka calls the new Queen ‘Mamohato Memorial Hospital To help Lesotho deliver the best care an ambitious, affordable, and high-quality health projects, and is the world’s largest and advisory services to boost socially “something amazing for the people of possible for its people, IFC facilitated a health project. It is seen as a replicable multilateral investor in the private health responsible health care in Sub-Saharan Lesotho.” An IFC-supported PPP representing 2008 PPP agreement between the model to boost health care provision in care sector in emerging markets. Africa. One of the initiative’s first projects $100 million in new investment, the hospital is part of our broader commitment to expand government and the Tsepong Consortium, other parts of Africa, with IFC now To deepen its support for Africa’s health was a $2.6 million investment in Nairobi access to health care in Africa with private led by private South African health care advising in a similar project in Nigeria’s sector, the World Bank Group, supported Women’s Hospital to build three hospitals investment. It”It has modern equipment which hasn’t been available to patients in rural areas provider Netcare. Cross River state. by the Bill and Melinda Gates Foundation, that will provide more than half of its before,” Mabothile says. “It is a dream to IFC worked closely with Lesotho on the launched the Health in Africa Initiative in services to Nairobi’s poor. work in a place like this in my own country.” feasibility, structuring, and implementation 2009. The initiative is helping mobilize up 36 TRANSFORMING KEY MARKETS AND INDUSTRIES 37 PAN-AFRICAN INFRASTRUCTURE LOCAL BOND MICROFINANCE MARKETS CAPITAL Financing Africa’s development markets. A key part of its role is to requires significant amounts of long- support landmark transactions, over- term investment—especially in key coming special challenges and creating a MARKET sectors such as infrastructure, industry, demonstration effect for others to follow. housing, and microfinance. In Tanzania, ESMID’s enabling Local financial institutions are environment advice supported the first DEVELOPMENT increasingly stepping up to meet this local currency bond issue by a microfi- need, in many cases able to provide more nance institution: PRIDE Tanzania’s capital, and at longer maturities, than 2010 transaction that raised TZS 17.7 Tapping New they could before. But they are not the billion ($12.2 million). A 75 percent only source. risk-sharing guarantee from the U.S. Funding Sources In other regions such as Asia and Agency for International Development Latin America, local bond markets have allowed lead arranger Standard Char- proved important as well. While still in tered Bank to place the security with their nascent stage in Africa, they have local investors. PHOTOS The ESMID initiative strengthens private sector bond Innovative private sector great potential there as well. ESMID similarly helped Kenyan issuance in Africa. After its solutions to Africa’s Popular with deep-pocketed local investment bank NIC Capital receive advisors helped clear some key investment needs. institutional investors, Africa’s existing regulatory approval for the country’s first regulatory obstacles, issuers on the Nairobi Stock Exchange raised bond markets are largely dominated by equity-linked bond, allowing issuer Athi new financing for a $100 million government paper. Heavy regulatory River Mining to raise the Kenyan shilling cement plant and the expansion of microfinance in Tanzania. requirements often block potential private equivalent of $22 million in 2010 to build sector issuers from tapping them, cutting a large-scale cement plant in Tanzania. off access to much-needed funds. Linking policy advice with support for ESMID’s work to develop local bond local markets. These are expected to Helping open the doors is the Efficient these kinds of precedent-setting markets complements IFC’s own Treasury enable IFC to issue more than $1 billion Securities Markets Institutional Develop- transactions, ESMID has helped reduce operations, which include local currency equivalent in Ghanaian cedis and CFA ment (ESMID) program, a joint the time needed to approve bond issues financing in multiple African countries as francs over the next 10 years. initiative of Sweden’s SIDA, the World from an average of 270 days in East well as deeper partnerships with local Going forward, additional issues are Bank, and IFC that provides advisory Africa to 60 days in Tanzania and 45 regulators and markets. In December planned in those markets. Options for services to strengthen the regulatory days in Kenya. It is also active in 2011, Ghana and the eight West African more issues are also being discussed with framework, market infrastructure, Nigeria, and considering expansion in Monetary Union countries approved authorities in Kenya and Nigeria, and may market participants, and regional other parts of Africa. IFC’s plan to establish a series of local extend to other markets as they develop. currency bond programs to strengthen 38 TRANSFORMING KEY MARKETS AND INDUSTRIES 39 PAN-AFRICAN CONTACT US PHOTO Nigeria’s Vitafoam, a manufacturer of pillows and mattresses, has recently added a production center in Sierra Leone, part of the increasing trend of cross- border investment within Africa. SOUTH-SOUTH South-South investment—the flow of In 2011 IFC mobilized a $115 million IFC has offices in more than CREDITS Tullow Oil (p. 24) private capital from one emerging market to financing package for Vodafone Ghana, 80 countries around the world. Vegpro (p. 28) another—is growing worldwide at three times much of it sourced from the China Telling Our Story— Samson Mulugeta/IFC (p. 29) INVESTMENT the rate of investment from developing Development Bank and the Export-Import Africa March Schlossman/Panos Photos; countries. As a result, IFC now provides Bank of China. Vodafone Ghana CEO Kyle Sub-Saharan Africa Thierry Bresillon/Godong/Panos considerable support to investor companies Whitehill credited IFC with introducing his Johannesburg Photos; IFC Photos (p. 31) Produced by 14 Fricker Road, Illova, 2196 A Key Source from the global South. Many Southern firm to “new partners and sources of Johannesburg, South Africa IFC Corporate Relations Anthony Njuguna/Reuters; Javier Calvo/ multinationals are IFC clients, working financing,” which are helping enhance its IFC; Citadel Capital SAE; MSC (p. 33) of Capital closely with us to expand into new markets. telecommunications network and spread the Telephone: (27-11) 731-3000 Photography SunEdison (p. 34) African companies themselves are also benefits of mobile phone and broadband Nairobi Thomas Mukoya/Reuters IFC Photos (p. 35) increasingly investing cross-border. While services in Ghana, especially in rural areas. Commercial Bank of Africa (CBA) Building (front cover) Nairobi Women’s Hospital (p. 36) Mara/Ragati Road - Upper Hill Sando Moore, Jason Florio, Technoserve South Africa is often noted as the largest Another ZAR75 million ($9.5 million) P.O. Box 30577-00100 Global Partnership for Output-BasedAid; IFC acts as regional foreign investor in Africa, increasingly IFC loan to Apollo Tyres South Africa (inside cover) IFC Photo (p. 37) Nairobi, Kenya catalyst for investment African multinationals are emerging from supports the investment by an Indian Telephone: (25-4) 20-2759-000 Iwan Bagus (pp. 2 and 4) IFC Photos (pp. 39 and 40) in Africa. other countries. company into South Africa. It continues IFC Photo (p. 8) Vitafoam Nigeria, a leading IFC’s support for Apollo Tyres’ growth into Dakar Jason Floro (p. 9) Rue Aimé Césaire x Impasse FN 18 prolongée Sven Torfinn/Panos Pictures (p. 10) manufacturer of mattresses and other a global tire company, which began with Dakar, Senegal Design Partner foam-related products, now has a new financing in India and has continued as it Telephone: (22-1-33) 859-7100 IFC Photos (p. 13) Design Army subsidiary in neighboring Sierra Leone, a has become one of the world’s fastest- Sando Moore (p. 16) rising country that has made great strides growing players in its industry. Headquarters Scatec Solar (p. 18) Printing since its civil war ended a decade ago. The IFC is also helping Morocco-based Washington, D.C. Azure Power Private Ltd. (p. 19) Westland Printers IFC Corporate Relations GroFin (p. 21) expansion was supported with a $2.8 insurance provider Saham Finances expand 2121 Pennsylvania Ave., N.W. million IFC loan, signaling to all that Sierra into parts of Africa where many people lack Washington, D.C. 20433 USA John McNally/IFC (p. 23) Leone is open for business. health, life, and business insurance coverage. Telephone: (1-202) 473-3800 We are well positioned to play a catalytic IFC and the IFC ALAC Fund, managed by role in this vital new source of funding for IFC Asset Management Company, are low-income and middle-income countries investing the Moroccan €90 million in alike. It is one that tends to be more resilient Saham Finances. The investment will to economic disruptions and shifts in global support the growth of the company, with a trade flows than capital flows sourced from focus on improving service across Africa, developed countries. where rates of insurance coverage are among the lowest in the world. 40 TRANSFORMING KEY MARKETS AND INDUSTRIES STAY CONNECTED OUR VISION Web and Social Media Resources That people should have the opportunity to escape poverty and improve their lives. Facebook www.facebook.com/IFCwbg Twitter OUR VALUES www.twitter.com/IFC_org Hashtags: #IFC and #TOSafrica •  Excellence Flickr •  Commitment www.flickr.com/IFCphotos •  Integrity LinkedIn •  Teamwork http://on.ifc.org/ifcLinkedIn •  Diversity Scribd www.scribd.com/IFCpublications YouTube OUR PURPOSE www.youtube.com/IFCvideocasts To create opportunity for people to escape Telling Our Story poverty and improve their lives by catalyzing www.ifc.org/tellingourstory the means for inclusive and sustainable growth, through: •  Mobilizingother sources of finance for private enterprise development •  Promoting open and competitive markets in developing countries •  Supporting companies and other private sector partners where there is a gap •  Helpinggenerate productive jobs and deliver essential services to the poor and vulnerable To achieve its purpose, IFC offers development- impact solutions through firm-level interventions (direct investments, Advisory Services, and the IFC Asset Management Company); promoting global collective action, strengthening governance and standard-setting; and business enabling environment work. Creating Opportunity Where It’s Needed Most ifc.org 2012