IFC PEP Africa was launched in July 2005. IFC PEP Africa establishes partnerships with donors, governments, and the private sector to design and implement a range of advisory services to support achievement of IFC’s overall strategic objectives in Africa. |
Approved funding (FY11-15):
- IFC: $47 million
- Donor: $140 million (expected)
- Client: $20 million (expected)
| Previous funding (FY06 -10):
- IFC: $66.8 million
- Donor: $76 million (expected)
- Client: $18.2 million (expected)
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Strategy:
IFC PEP Africa works on
- Improving the investment climate
- Unlocking sector growth and mobilizing private sector investment
- Enhancing the competitiveness of micro, small and medium enterprises with a focus on IDA, frontier and post-conflict countries and on the infrastructure, agribusiness, and health and education sectors while scaling up climate change initiatives.
The IFC PEP Africa strategy is articulated over six years (FY10-FY15). Implementation of the strategy is split into two phases, the “Consolidation and Crisis Response Phase” (F10-FY12) and the “Growth through Replication Phase” (FY13-FY15). IFC PEP Africa provides advice along the five IFC advisory services business lines: |
Access to Finance:
IFC PEP Africa can complement its advisory services with IFC’s various financial products delivered directly or through financial intermediaries. IFC PEP Africa supports banks and other financial institutions, helping them expand the availability of financial services to low-income households and smaller and medium sized businesses, especially to those on the fringes of the formal economy. This strengthens development impact and serves as a catalyst in the market. | Corporate Advice:
No other DFI or donor can offer the spectrum of private sector development advice that IFC can under its Corporate Advice business lines. The spectrum covers unlocking the growth of high-potential sectors, enhancing the development impact of investee companies in the sector, creating market opportunities for SMEs by linking them to these companies as suppliers, and improving the growth prospects of the SMEs by strengthening their competitiveness. |
Environmental and Social Sustainability:
This area of expertise is regarded as one of IFC’s strongest competitive advantages. No other financial institution can leverage the depth and breadth of expertise that IFC can provide across both investment and advisory activities in this domain. In Africa, the current focus is on exploiting IFC global expertise in energy efficiency, renewable energy, cleaner production, community development and gender. | Infrastructure Advisory:
IFC is the only DFI providing public-private-partnership and privatization-related transaction advisory services in Africa and plays a pioneering role in the delivery of these services in infrastructure sectors and countries that are not immediately attractive to the private sector. Furthermore, this advice can be complemented by other advice on SME linkages and community development issues around infrastructure projects through IFC PEP Africa’s Corporate Advice and ESS Business lines. |
Business Enabling Environment:
Working with private and public stakeholders, IFC advises governments on the design and implementation of business-friendly reforms at the national and local levels, in areas including business start-up, taxation, trade logistics, property registration, and investment policy and promotion. |
Indicators:
- Number of investment climate reforms passed
- Value of IFC investments linked to IFC PEP Africa advisory services
- Value of financing accessed by SMEs and number of SMEs reached
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Results in FY06-09:
- Value of investment linked to advisory services:
| $300 million |
- Value of finance accessed by SMEs:
| $336 million |
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| 44,500 |
- Investment climate reforms:
| 62 |
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