Renewables to get IFC local-currency lending

From the newsletter

The International Finance Corporation (IFC) is expanding its local-currency lending and direct investments across Africa to help projects reach the scale needed to attract large global investors. Renewable energy, which is among the IFC’s funding priorities, is expected to benefit, helping advance projects that have so far struggled to attract investors.

• Last year, Africa received over $15 billion in IFC commitments, mainly in debt and trade finance, with local-currency lending now accounting for 30% of its total portfolio.

• The lack of local-currency funding had made renewables projects costly and risky, discouraging investors. Some prefer to invest only in markets where they can build portfolios worth at least $1 billion before committing long-term capital.

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