IFC doubles investment in Kenya
World Bank’s private sector lending arm IFC has invested Sh20 billion in the financial year ending June 30, 2018 while projecting its total portfolio to over Sh100 billion in Kenya.
It has again announced plans to double its investment to Kenya’s private sector before or within the end of 2018 to Over Sh 40 billion.
“When I look at our headroom in Kenya, we are constrained by our ability to make new investments. If we find Sh50 billion of new investment we will do it,” IFC regional director for Africa Cheikh Seydi said.
He said If their pipeline of investments fall within the fiscal year, they will be booked regardless of whether they were projected or not.
“It could be more than the Sh20 billion.”
A look at IFC’s projects for Kenya shows that it invested at least Sh120 million to entrepreneurs in the Kenya SMEs roads program and Sh100 million in horticulture sector through Subati Group.
In addition, IFC pumped Sh30 million in the pharmaceutical sector by investing in Good Life Pharmacy and Sh15 billion in Cooperative banks to support SMEs.
Speaking during the release of its Sub Saharan Africa fiscal year results ending June 30, IFC vice president for middle East and Africa Sergio Pimenta said governments like Kenya can no longer overcome development challenges without increasing support from the private sector.
“Our strategy aims to mobilize private capital in low income and fragile states. we are developing new tools to help us reduce commercial risks and encourage more investors,” he said.
IFC announced a record new investment commitment of Sh62 billion in long-term financing in the region.
The investment is an increase from Sh35 billion in the previous fiscal year and accounted for more than a quarter of IFC’s Sh230 billion in global long-term financing.
Advisory services accounted for Sh40 billion of the investments during the year.
IFC financial institution’s clients provided more than 2.9 million loans to micro-enterprises and small and medium businesses.
The corporation supports at least 18 financial Institutions in Kenya. IFC’s commitments in Sub-Saharan Africa included Sh150 billion in long-term financing for IFC’s own account.
IFC mobilised another Sh470 billion from other investors in core mobilizations, supporting projects in infrastructure and natural resources (Sh350 billion); manufacturing, agribusiness and services (Sh120 billion); financial institutions (Sh110 billion) and telecoms, media and technologies
Source: The Star