The IFC extended bns in loans to accelerate Africa’s green energy transition: The International Finance Corporation (IFC) disbursed a total of USD 11.5 bn in funding in FY 2023 to bolster Africa’s transition to clean energy, strengthen the continent’s green tech capabilities, increase intra-Africa commerce, and stimulate job creation, according to a statement.

The specifics: Between July last year and 30 June 2023, the lender extended USD 876 mn in climate funding, USD 1.7 bn to support the continent’s digitization efforts, USD 1 bn for trade-related investments, and nearly USD 2 bn for SME-focused financing. The IFC allocated USD 3.5 bn in short term loans and mobilized a further USD 3.1 bn, of which 40% were channeled toward climate adaptation financing and 48% earmarked to support low-income and conflict-stricken countries.

Green projects included: The funding package included USD 1.2 bn to expand financial institutions’ sustainability-linked lending capacity, USD 1.1 bn to finance UAE renewables developer Amea Power’s 560 MW solar plant and 505 MW wind farm in Egypt, EUR 242 mn (c. USD 261.3 mn) for Senegal’s Sococim Industries under a program to boost low-carbon cement utilization, and a USD 500 mn investment in BUA Cement in Northern Nigeria to promote green cement production in Africa.

There’s more coming: Last month, Egypt’s largest private lender CIB said it is scheduled to receive a USD 100 mn loan from the IFC to help fund the bank’s climate finance endeavors. The lender also signed an agreement with Morocco’s Mohammed VI Fund for Investment (M6FI) to identify and finance green infrastructure projects in the kingdom.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

  • Serbian copper plant expansion on deck: China’s Zijin Mining Group is planning to expand its copper mine in Serbia from a few hundred meters deep, to 2 km deep for an investment cost between USD 3.5 bn to USD 3.8 bn. Copper is a critical metal needed in battery production — a crucial component in the energy transition. (Bloomberg)
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