(Ecofin Agency) – The approved financing projects relate more to the agriculture and climate resilience sectors. However, Africa’s share in this new cycle of approvals remains relatively modest compared to the total commitments planned for the period.
The US Development Finance Corporation (DFC), the US institution for financing the private sector in developing countries, announces that it has approved commitments of USD 64.1 million for 7 initiatives in Africa. 3 of these commitments relate to a total of USD 21.5 million in loan portfolio guarantees, while 3 others relate to loans for USD 37.3 million and only 1 is approved in the form of an equity contribution of $25 million.
Agriculture and climate solutions are the targets of the bulk of these commitments, with projects capturing a total of USD 35 million, or 54.6% of the total amount. Pan-African investments dominate, with total announced funding of USD 35 million. In terms of country commitments, there are initiatives in Ghana, Kenya and Lesotho.
.@POTUS: We’re deepening our collaboration with countries across Africa to tackle food insecurity. Learn how @DFCgova critical part of U.S. foreign policy, provides financing and insurance to support development around the world, including in Africa. https://t.co/aPNGhuyML2
— ShareAmerica ?? (@ShareAmerica) March 27, 2023
These DFC commitments remain relatively modest compared to the total volume of projects to be financed for the second quarter of 2023, i.e. a total of 655 million USD. This despite the desire shown by American politicians to commit themselves more.
It is not excluded that new commitments are in preparation, while major development financing institutions in Africa such as the AfDB or the ECA, are calling for greater involvement of private capital to support the resilience of the continent.