$2bn funds announced for sub-Saharan Africa

Feb 04, 2010

The International Finance Corporation has pledged to plough funds in sub-Saharan Africa for the 2009-10 fiscal year as part of a $2 billion (€1.45 billion) transaction with the Japanese government which will invest in the restructuring of African banks.

Lars Thunell, Chief Executive Officer at the International Finance Corporation, stated to Reuters that the organisation is committed to channelling funds from institutional investors to provide financial services for emerging markets.

He is quoted as saying: "In the June 2009-10 year, we will grow over $2 billion. We are hoping that we will also mobilise more funds, in total we will do about $2.5 billion."

In addition, the World Bank has predicted growth of 2.5 per cent for Africa and 4.1 per cent for sub-Saharan African this year.

Recently, investor confidence in South Africa was reported to have increased, after the ETM research house and Maxim retirement fund revealed that its Investor Confidence Index rose by 52 per cent in the last quarter of 2009 - compared with the same quarter in the previous year.