July 22, 2022

International Finance Corporation Invests $2 Billion In Kenyan Banks

The largest global development institution has committed $2 billion to help support small Kenyan businesses and women-owned organizations through partnerships with banks in the country.

International Finance Corporation (IFC) was established to end extreme poverty by encouraging the growth of the private sector in developing countries. Since 1956, the company has invested more than $321 billion into emerging markets and developing economies.

According to the outlet, their work which supports the World Bank Group’s goal of ending extreme poverty, has helped to create new jobs and raise the living standard for many people, including the economically disadvantaged and vulnerable.

“Supporting small businesses and climate-friendly projects is central to IFC’s strategy in Africa to help create jobs, respond to climate change and leverage the opportunities afforded by the digital economy,” said Mohamed Gouled, Vice President of Risk and Finance at the IFC.

The IFC has invested in a wide range of local and regional banks in Kenya and boasts a strong credit delivery and a monitoring system that is not usually available to smaller lenders or international platforms. The financial corporation also enables local banks to augment their capital to continue seamlessly lending to small businesses.

Africa-based financial services company Equity Group recently accounted for the largest share of these loans at Sh52.8 billion for its Kenyan and Democratic Republic of Congo units. The organization also acquired a 6.7 percent stake in the lender that the IFC gained from Britain in April.

Kumba Kpakima

Kumba Kpakima is a reporter at POCIT. A documentary about the knife crime epidemic in the UK got her a nomination for the UK's #30toWatch Young Journalists of the Year.