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Tag: World Bank Group

  • Mobile-Phone tech powers saving surge in Nigeria, says WBG

    Mobile-Phone tech powers saving surge in Nigeria, says WBG

    World Bank Group has said that the number of adults using accounts to save in Nigeria and other developing countries has risen at fastest clip in a decade. In a statement the Multilateral Financial Institution said in sub-Saharan Africa account ownership grew to 58 per cent of adults, up from 49 per cent in 2021. Use of mobile money accounts is at the highest levels in the world.

     “More adults than ever in low- and middle-income countries now have bank or other financial accounts, leading to a rise in formal saving,” said the World Bank Group’s Globaldex 2025 report.

    This momentum in financial inclusion is creating new economic opportunities.  Mobile-phone technology played a key role in the surge, with 10 per cent of adults in developing economies using a mobile-money account to save—a five-percentage point increase from 2021.

     In 2024, 40 per cent of adults in developing economies saved in a financial account in 2024—a 16-percentage-point increase since 2021 and the fastest rise in more than a decade. Higher personal saving—through banks or other formal institutions—fuels national financial systems, making more funds available for investment, innovation, and economic growth. In Sub-Saharan Africa, formal savings increased by 12-percentage points to 35 per cent of adults.

    “Financial inclusion has the potential to improve lives and transform entire economies,” said World Bank Group President Ajay Banga. “Digital finance can convert this potential into reality, but several ingredients need to be in place. At the World Bank Group, we’re working on all of them. We’re helping countries get their people access to new or improved digital IDs. We’re constructing social protection programs with digital cash-transfer systems that deliver resources directly to those in need. We’re modernizing payment systems and helping to remove regulatory roadblocks—so that people and businesses have the financing they need to innovate and create jobs.”  Bill Gates, Chair of the Gates Foundation, one of the supporters of the Global Findex, said “more people than ever have the financial tools to invest in their futures and build economic resilience, including women and others previously left behind. This is real progress. The case for investing in inclusive financial systems, digital public infrastructure, and connectivity is clear—it’s a proven path to unlocking opportunity for everyone.

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     “The Global Findex is the definitive source of data on global access to financial services—from payments to saving and borrowing. It highlights a major milestone in financial inclusion: nearly 80 per cent of adults worldwide now have a financial account, up from 50 per cent in 2011. But 1.3 billion adults still lack access to financial services. Mobile phones could help close this gap: about 900 million adults without financial accounts have a mobile phone, including 530 million with smartphones. Investment in systems that enable instant money transfers—such as UPI in India or PIX in Brazil—could help expand financial usage.

    So could stronger consumer-protection frameworks and efforts to make phones and accounts more secure. The Findex data also show that digital financial services are helping narrow the gender gap in account ownership: globally, 77 per cent of women have accounts compared with 81 per cent of men.  In low- and middle-income countries, women’s account ownership nearly doubled—from 37 per cent in 2011 to 73 per cent in 2024.  For the first time, the report includes data on personal mobile-phone ownership and internet use. Globally, 86 per cent of adults owned a mobile phone, including 68 per cent of adults with a smartphone, according to the Global Findex Digital Connectivity Tracker 2025 shows. The rising use of mobile phones for digital transactions, however, comes with new risks. Of the four billion adults in low- and middle-income economies who own a mobile phone, only around half use a password to protect their phone.

    “Across all developing countries, more adults are also using mobile phones or cards to pay merchants. In 2024, 42 per cent of adults in low- and middle-income countries made an in-store or online digital merchant payment, up from 35 per cent in 2021. Three-quarters of adults who receive government payments—and half of wage earners—receive their money into an account, a practice that helps reduce theft and ensure that money goes to the right person. It said region leads the world in digital connectivity and use of financial services: 86 per cent of adults have a smartphone and 83 per cent of adults have a financial account while The European region has the highest internet usage and social media engagement rates among developing economies. Mobile-phone ownership rates top 94 per cent. Latin America and the Caribbean on the other hand has about 70 per cent of adults have an account, and over half use their account digitally using a card or phone. In the Middle East and North Africa account ownership rose to 53 per cent from 45 per cent in 2021. In 2024, 17 per cent of adults save formally, up from 11 per cent in 2021 and in South Asia nearly 80 per cent of adults own an account, although the high rate is driven by India, where 90 per cent of both men and women have an account and 65 per cent own a mobile phone.

  • World Bank Group, IMF partner on climate change

    World Bank Group, IMF partner on climate change

    The World Bank Group (WBG) and the International Monetary Fund (IMF) are deepening their cooperation through an enhanced framework to help countries scale up action to confront the threat of climate change.

    Both global multilateral financial bodies said the collaboration will provide critical support for countries’ climate strategies—through an integrated, country-led approach to policy reforms and climate investments.

    They agreed that within their respective mandates, they will leverage their analytics, technical assistance, financing, and policy expertise to enhance country-driven reform programmes.  

    Accordingly, the World Bank Group and the IMF will work together closely to identify each country’s climate challenges—and the priority policy reforms needed to address them. This process will be informed by the World Bank Group’s Country Climate and Development Reports (CCDRs), the IMF’s climate-related analytics, and countries’ own climate ambitions.

    Also , the World Bank Group and the IMF said in a joint release at the weekend that they will work with other Multilateral Development Banks and development partners to help countries implement the reforms through technical assistance and financing, adding that upon request, the World Bank Group and the IMF will help establish country-led platforms designed to mobilise additional climate finance, including from the private sector.

    The enhanced framework, the bodies stated, will build on lessons learned since the release of the institutions’ Joint Statement on Enhancing IMF-World Bank Collaboration in September 2023.

    Read Also: World Bank Group okays $2.7b renewable energy plan for Nigeria, others

    This enhanced cooperation between the two institutions will foster country-driven partnerships, galvanise policy changes, and scale up investments to meet countries’ climate needs. The joint effort will also optimise the increased resources the institutions are dedicating to climate action and crowd-in additional resources from development partners and private sector.  

    The World Bank Group is ramping up its climate action with new measures including devoting 45 percent of annual financing to climate change adaptation and mitigation by 2025, working to bring renewable power to 250 million people in Africa by 2030, and expanding its crisis toolkit to support people on the front lines of the climate crisis. The institution has also optimised its balance sheet and is raising funds for a robust IDA21 replenishment and a new Livable Planet Fund.  

    The IMF is helping countries build resilience to climate change with support from its Resilience and Sustainability Trust (RST), which is funded by generous contributions from 23 countries. Since it became operational in October 2022, 18 countries have already benefitted from the RST.

  • MIIC, IFC sign deal to support entrepreneurship

    Egypt has signed an agreement with the International Finance Corporation (IFC), a member of the World Bank Group,  to support entrepreneurs and emerging companies in Africa, promote innovation and drive economic growth, according to a statement.

    Sahar Nasr, Minister of Investment and International Cooperation, and Mouyyad Makhlouf, IFC Regional Director, Middle East and North Africa at the IFC signed the agreement.

    Under the agreement, the MIIC and the IFC will select 100 promising entrepreneurs from across Africa to connect them with business leaders, international investors, financial institutions and decision-makers at this year’s Africa Conference under the patronage of President Abdel Fattah Al-Sisi in Sharm El Sheikh in December.

    “This initiative will strengthen Egypt’s position as a regional hub to attract innovative entrepreneurs and create a favourable enabling environment for those companies across Africa, which will help them grow, raise capital and maximise global reach,” mentioned Nasr.

    Over the past two years, the IFC has provided nearly $65million in financing to technology companies and start-ups in the Middle East and North Africa, along with leading companies in business accelerators and funds such as Wamda, Flat 6 Labs and Algebra Ventures, noted the statement.

    “Small businesses, including emerging ones, are the cornerstone of most economies in Africa and the Middle East,” said Mouyyad Makhlouf, IFC Regional Director for the Middle East and North Africa.

    “Governments across the continent can help create jobs and opportunities for their people by providing them with access to capital and guidance,” added Makhlouf.

    Makhlouf pointed out that the IFC has invested in Egypt this year $1.2bn,  which is the highest investment rate in the Middle East, especially after taking several measures to improve the investment environment.

    Today’s agreement is the best opportunity to create jobs and remove obstacles that may face entrepreneurs and young people, added Makhlouf, noting that the growth rate in Egypt has reached 5.8 per cent, and the removal of obstacles to small investors and increased employment opportunities would lead to an increase in growth rate.

     

  • ‘Nigeria has received $14.2b from World Bank group’

    The World Bank Group, which begins its week-long yearly Spring Meetings today in Washington has supported Nigeria with loans and International Development Association (IDA) credits worth about $14.2 billion since 1958.

    The group, in the 2017 fiscal year, committed $1.51 billion to the country. So far in 2018, it has already spent $486 million on different development projects across the country.

    Some of the projects being undertaken by the Bretton Wood Institution include Electricity Transmission Project, Agro-Processing, Productivity Enhancement and Livelihood Improvement Support Project, Polio Eradication Support Project and Housing Finance Development Programme, among others.

    The World Bank Group is also helping to fight poverty and improve living standards in the country through 33 Core Knowledge Product Reports and 29 ongoing National and Regional projects.

    This is in addition to about 60 Trust Funds.

    Nigeria attends the meeting every year because of the quantum of investments and assistance it receives from both the IMF and the World Bank.

    Although Nigeria currently has zero loans with the IMF, it enjoys technical support from the organisation.

    Minister of Finance Kemi Adeosun and Central Bank of Nigeria (CBN) Governor Godwin Emefiele are in Washington DC to join other economic experts from around the world to discuss issues affecting global economy.

    Discussions would take place under the auspices of the World Bank Group and the International Monetary Fund (IMF).

    The Meetings will bring together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organisations and the academia.

    The experts will discuss issues of global concern, including the world economic outlook, poverty eradication, economic development and aid effectiveness.

    There will also be seminars, regional briefings, press conferences and many other events with focus on global economy, international development and the world’s financial system.

  • World Bank Group scores Nigeria Agric sub-sector low

    World Bank Group scores Nigeria Agric sub-sector low

    The World Bank Group on Tuesday in Abuja has said there is a need for governments to strengthen  laws that govern the agricultural sector in the country.

    Mr Farbod Youssefi, the Programme Manager at the World Bank made the appeal at a workshop organised by the Alliance for a Green Revolution in Africa (AGRA), in partnership with the World Bank Group.

    The workshop was on the Enabling Business of Agriculture (EBA, 2017) report for Nigeria.

    According to him, Nigeria has weak laws and regulation in areas are that deal with seeds production, marketing and transportation of agricultural products.

    “There are other areas such as finance, fertilizer, machinery where the scores in Nigeria are actually higher than in other countries but still there are areas where planning improvement can be made.

    “The presentation highlights those opportunities to improve regulation for agribusiness in Nigeria.

    “The EBA measures and monitors key elements of countries’ regulatory framework that affect agribusiness value chains.

    “It identifies and analyzes legal barriers for the business of agriculture and quantifies transaction costs of dealing with government regulations, while at the same time providing indicators that can be used to benchmark the regulatory environment of different economies.

    “The globally comparable data it presents can inform policy dialogue and reforms, which promote private sector investments in the agricultural sector,” Youssefi said.

    Dr Kehinde Makinde, Country Manager, AGRA, said that business needed an appropriate environment to flourish, adding that this was an opportunity to get feedback from stakeholders in case of lapses from the report.

    “So what this report does is to go through different countries to see their business environment in terms of agricultural business value chain and the regular chain framework.

    “We are talking about sectors like seed, fertilizer, machinery that have been indicated in this report.

    “We want to show how each country is performing on the benchmark against other countries.”

    Makinde said that there were 62 countries that were covered in the report which showcased how Nigeria was doing in relation to other countries.

    “The essence is to provide information that policy actors like the private sector, policy makers and media can be used to be able to see what level Nigeria is and see what needs to be done to improve on these indicators.

    “This is a world bank report on enabling business for agriculture for Nigeria. It is clear that to do this, they consulted with many partners.

    ”The quality of data you get depends on those people that provided the information.”

    Makinde said World Bank is a credible institution’ which had been in the business over time.

    ”People may have one or two reasons to disagree with this report but it doesn’t mean it applies to everywhere in the country.

    “They are looking for an average for the nation. In a particular state, they may have a different situation maybe a little higher than average or little below.

    “But what is important is to see the general situation of things and look at the general situation that the report talked about.

    Makinde maintained that the report spoke about the country and not a particular area, adding, “if there are issues with the report, this is a platform to get feedback from stakeholders.

    “We will look through this together then we inform future reports where we see there are errors. But I think in large measure, what we have seen here has been validated by others,” he said.

    On his part, Mr Waziri Ahmad, Commissioner for Agriculture, Adamawa, faulted the report on machinery.

    Ahmad stated that the report only considered the legal area without looking at the reality on ground.

    According to him, the record scored Nigeria high in machinery while the country barely has less than 30,000 functioning tractors for farmers.

    “With our population, we should have more tractors in the country. Talking about 300,000 to 400,000 tractors but we have less than 30,000 functioning tractors in the country right now.

    “On the other hand, the EBA assessment score is very high but in reality it is not like that. So there is a disconnection in that aspect.

    “We find ourselves in a situation where smallholder farmers are over 90 per cent of the farming populace and we will be with that for a long time,” he said.

    Ahmad said that officially, the Federal Government and most states had not taken cognizance that there should be two-track approach.

    “That is mechanisation for large scale farmers and the other is for the smallholder farmers who are the large majority,” he added.

    He, however, urged those reviewing the draft before presenting the final report to look at the issue of mechanisation in order to improve productivity in the agricultural sector.

    The World Bank Group report scored the country’s seed sector 48.85 per cent and markets 49.24 per cent.

    Others are transport 46.30 per cent, water 32.03 per cent, ICT 50.00 per cent, fertiliser 57.79 per cent, machinery 63.07 per cent and finance 57.21 per cent.

    Youssefi welcomed observations from some stakeholders while and said the report was collated before June 2017.

    He assured that the transformations that had taken place in the agricultural sector from June 2017 till date would be captured in the 2018 report.

    NAN

  • Nigeria owes World Bank Group $7.8b

    Nigeria owes World Bank Group $7.8b

    A new report has shown that Nigeria owes 51 per cent of its cumulative $15.35 per cent external debt to the World Bank Group.

    A report by FBN Capital research titled: ‘External Debt Ratios to Savour’  said the Federal Government of Nigeria’s (FGN’s) external debt obligations at end-September amounted to $15.35 billion, equivalent of 3.9 per cent of 2016 Gross Domestic Product (GDP).

    The investment and research firm said the increase over third quarter debt statistics amounted to just $300 million, consisting largely of disbursements by the soft loan windows of the World Bank and the African Development Bank, and by the Agence Française de Développement (the French state investment bank).

    Nigeria will next month be raising $3 billion from the Eurobond market to help fund part of the 2017 budget. “The point to be made, amid some uninformed commentary about the FGN’s return this month to the Eurobond market to raise $3 billion, is that concessional loans are still available. The external debt stock of Angola, which has also been downgraded by Moody’s to B2, was an estimated 42 per cent of GDP in 2016,” it said.

    The FBN Capital explained that annualising interest and fee payments made on Nigerian external debt in the third quarter would bring external debt service to 4.3 per cent on the basis of mid-2017 stocks.

    Also, the Office of the Accountant-General of the Federation (OAGF) data for first half of 2017 show domestic and external interest payments by the FGN at N872 billion and N56 billion respectively.

    “The FGN has tapped the Eurobond market again to cover the larger part of its 2017 external borrowing target. If it is to tackle the structural flaws of the Nigerian economy, it has to borrow because transforming its non-oil revenue collection is at best a medium-term project. For reasons we have indicated and others, it makes sense to borrow externally,” it said.

    The FGN’s next step is the externalisation of longer-tenor Nigerian Treasury Bills up to a ceiling of $3 billion, which has been approved by the National Assembly.

    Data made available by the Debt Management Office (DMO) showed that Nigeria’s debt stock has hit N20 trillion – as at September 30.Domestic debt accounts for 76.96 per cent of this figure while foreign debt accounts for 23.04 per cent.

    In figures, domestic debt stood at N15.679 billion, an increase of 4.1 per cent from the N15.034 trillion recorded in June. Foreign debt stood at N4.694 trillion, a rise of 1.9 per cent above the N4.602 trillion as at June 30.

    According to the DMO, the figures show that the Federal Government was more inclined to domestic debt, which is partly responsible for the high debt service figures. This year, the Federal Government issued various debt instruments like the N100 billion Sukuk for road construction, monthly FGN Savings bond and the Eurobond.

    Nigeria’s debt profile stood at N19.6 trillion as at June 30 of this year, according to the DMO document. Before the unanimous approval of the loan, some senators however called for caution on the way and manner the Federal Government rushes to take foreign loans.

     

  • Nigeria owes World Bank Group $7.8b

    Nigeria owes World Bank Group $7.8b

    A new report has shown that Nigeria owes 51 per cent of its cumulative $15.35 per cent external debt to the World Bank Group.

    A report by FBN Capital research titled: ‘External Debt Ratios to Savour’  said the Federal Government of Nigeria’s (FGN’s) external debt obligations at end-September amounted to $15.35 billion, equivalent of 3.9 per cent of 2016 Gross Domestic Product (GDP).

    The investment and research firm said the increase over third quarter debt statistics amounted to just $300 million, consisting largely of disbursements by the soft loan windows of the World Bank and the African Development Bank, and by the Agence Française de Développement (the French state investment bank).

    Nigeria will next month be raising $3 billion from the Eurobond market to help fund part of the 2017 budget. “The point to be made, amid some uninformed commentary about the FGN’s return this month to the Eurobond market to raise $3 billion, is that concessional loans are still available. The external debt stock of Angola, which has also been downgraded by Moody’s to B2, was an estimated 42 per cent of GDP in 2016,” it said.

    The FBN Capital explained that annualising interest and fee payments made on Nigerian external debt in the third quarter would bring external debt service to 4.3 per cent on the basis of mid-2017 stocks.

    Also, the Office of the Accountant-General of the Federation (OAGF) data for first half of 2017 show domestic and external interest payments by the FGN at N872 billion and N56 billion respectively.

    “The FGN has tapped the Eurobond market again to cover the larger part of its 2017 external borrowing target. If it is to tackle the structural flaws of the Nigerian economy, it has to borrow because transforming its non-oil revenue collection is at best a medium-term project. For reasons we have indicated and others, it makes sense to borrow externally,” it said.

    The FGN’s next step is the externalisation of longer-tenor Nigerian Treasury Bills up to a ceiling of $3 billion, which has been approved by the National Assembly.

    Data made available by the Debt Management Office (DMO) showed that Nigeria’s debt stock has hit N20 trillion – as at September 30.Domestic debt accounts for 76.96 per cent of this figure while foreign debt accounts for 23.04 per cent.

    In figures, domestic debt stood at N15.679 billion, an increase of 4.1 per cent from the N15.034 trillion recorded in June. Foreign debt stood at N4.694 trillion, a rise of 1.9 per cent above the N4.602 trillion as at June 30.

    According to the DMO, the figures show that the Federal Government was more inclined to domestic debt, which is partly responsible for the high debt service figures. This year, the Federal Government issued various debt instruments like the N100 billion Sukuk for road construction, monthly FGN Savings bond and the Eurobond.

    Nigeria’s debt profile stood at N19.6 trillion as at June 30 of this year, according to the DMO document. Before the unanimous approval of the loan, some senators however called for caution on the way and manner the Federal Government rushes to take foreign loans.

     

  • World Bank to raise $1.6b to combat hunger in Nigeria, others

    World Bank Group President Jim Yong-Kim on Thursday said the bank was working toward raising 1.6 billion dollars to build social protection systems to end food insecurity in sub-Saharan Africa and Yemen.

    In a statement made available to newsmen by the Head of Communications, World Bank Nigeria in Abuja, Mrs Olufunke Olufon, Yong-Kim said about 20 million people in Nigeria, South Sudan, Somalia and Yemen were on the “tipping point” of famine.

    “We at the World Bank Group stand in solidarity with the people now threatened by famine.

    “We are mobilizing an immediate response for Ethiopia, Kenya, Nigeria, Somalia, South Sudan, and Yemen. Our first priority is to work with partners to make sure that families have access to food and water.

    “We are working toward a financial package of more than 1.6 billion dollars to build social protection systems, strengthen community resilience, and maintain service delivery to the most vulnerable.’’

    Yong-Kim said he was also working with the bank’s board of directors to secure the approval of new operations amounting to 770 million dollars, funded substantially through the International Development Association (IDA) Crisis Response Window.

    “The World Bank Group will help respond to the immediate needs of the current famine, but we must recognize that famine will have lasting impacts on people’s health, ability to learn, and earn a living.

    “So, we will also continue to work with communities to reclaim their livelihoods and build resilience to future shocks. We are coordinating closely with the UN and other partners in all areas of our response.

    “We know that resolution to this acute crisis will not be possible without all humanitarian and development actors working together.

    “We call on the international community to respond robustly and quickly to the UN global appeal for resources for the famine.’’

    Famine was officially declared on Feb. 20 in South Sudan, impacting approximately 100,000 people.

    There is a credible risk of famines in Yemen, Northeast Nigeria, and other countries, says United Nations (UN).

    Ongoing conflicts and civil insecurity are further intensifying the food insecurity of millions of people across the region, and there is already widespread displacement and other cross-border spill over.

    For instance, food insecurity in Somalia and famine in South Sudan are accelerating the flow of refugees into Ethiopia and Uganda.

    The UN estimates that about 20 million people in Nigeria, South Sudan, Somalia and Yemen are affected.

     

  • Coal for electricity: Adeosun blasts World Bank, IMF

    Coal for electricity: Adeosun blasts World Bank, IMF

    The federal government on Wednesday lashed out at Western countries and multilateral development institutions for hampering her efforts to provide stable electricity supply to Nigerians.
    Speaking at a panel discussion at the on-going International Monetary Fund (IMF)/ World Bank meeting in Washington DC finance minister Mrs. Kemi Adeosun called the multilateral institutions and their western backers hypocrites for denying Nigeria and other African countries to use coal to generate electricity.
    According to Adeosun “am going to point fingers at multilateral institutions and the west, a good example is the coal-fired power plant, we in Nigeria have coal but we have power problem, yet we’ve been blocked because it is not green, there is some hypocrisy because we have the entire western industrialization built on coal energy, that is the competitive advantage that they have been using, now Africa wants to use coal and suddenly they are saying oh! You have to use solar and the wind (renewable energy) which are the most expensive, after polluting the environment for hundreds of years and now that Africa wants to use coal they deny us.”
    She agreed that Africa needs to make investment in infrastructure but the playing field must be leveled “we need policy consistency to attract bankable projects, we also need macroeconomic stability, but if you want to phase out coal,  no problem but those who started it should lead, those who want us to stop using dirty fuel should stop it first before telling us not to use it. By telling us not to use coal they are pushing us into the destructive cycle of underdevelopment, while you have the competitive advantages, you tie our hands behind us” she said.
    Adeosun went ahead to state categorically that she “would sign up to a global proposal that is fair, with a morally viable sequence that demands that the rich countries have to close their coal fields first before other countries have to do anything.”
    Professor Paul Collier of the University of Oxford who agreed with the finance minister called that “an ethical commitment from an African minister.”
    Nigeria’s finance minister lamented that huge infrastructure gap all over the world and stated that even if the federal government spends all its annual budget for five years on infrastructure, it cannot close Nigeria’s infrastructure gap. The global infrastructure deficit stands at $1.5 trillion.
    At the end of the panel discussion, Adeosun disclosed to Nigerian journalists that efforts of the federal government to repatriate stolen monies from foreign countries was yielding positive results with the US and Switzerland offering to return stolen loots.
    However, to ensure that the repatriated loots are put to good use, the government’s of the countries with these stolen monies she said are demanding that the federal government identify what specific projects specific amounts of money would be devoted to before they release the monies.
    Similarly, a report on fiscal monitoring disclosed that two-thirds of the global debt of the nonfinancial sector—comprising the general government, households, and nonfinancial firms—is currently at an all-time high amounting to about $100 trillion.
    This the report said “consists of liabilities of the private sector which, as documented in an extensive literature, can carry great risks when they reach excessive levels. However, there is considerable heterogeneity, as not all countries are in the same phase of the debt cycle, nor do they face the same risks.”
    However, the report warned that “there are concerns that the sheer size of debt could set the stage for an unprecedented private deleveraging process that could thwart the fragile economic recovery and resolved that “this private debt overhang problem is, however, not easy in the current global environment of low nominal output growth.”
    At another forum, the International Finance Corporation (IFC) of the World Bank Group, has launched a new program that aims to raise $5 billion from global institutional investors to modernize infrastructure in emerging markets over the next five years.
    This fund will open up a new stream of capital flows to improve power, water, transportation, and telecommunications systems in developing countries.
    The initiative called MCPP Infrastructure, builds on the success of IFC’s Managed Co-Lending Portfolio Program, a loan-syndications initiative that enables third-party investors to participate passively in IFC’s senior loan portfolio. In its first phase, the program allocated $3 billion from the People’s Bank of China across 70 deals in less than two years. It demonstrated how large investors can benefit from delegating the processes of deal origination and approvals to IFC.
    The first partnership under the program was signed with the global insurance company Allianz. Under the agreement, Allianz intends to invest $500 million, which will be channeled into IFC debt financing for infrastructure projects in emerging markets. IFC is also in advanced discussions with Eastspring Investments, the Asian asset management business of Prudential, for a commitment of $500 million. Similar discussions are being conducted with AXA, also for a commitment of $500 million.
    MCPP Infrastructure is designed for institutional investors seeking to increase their exposure to emerging markets infrastructure. IFC will originate, approve, and manage the portfolio of loans that will mirror IFC’s own portfolio in infrastructure. It will do so in a manner agreed upfront with its partner investors, always subject to the overall governance of the platform.
  • World Bank to mobilise $25b to fight climate change

    World Bank to mobilise $25b to fight climate change

    The World Bank has promised to mobilise 25 billion dollars in private financing for clean energy by 2020 to fight climate change in developing countries.

     

    This is contained in a Climate Change Action Plan, released by the bank on Friday in Washington, with a promise to add 30 gigawatts of renewable energy to the world’s energy capacity.

     

    Jim Kim, World Bank Group President said the plan was designed to help countries meet their Paris COP21 pledges and manage increasing climate impacts.

     

    He disclosed that to complement the World Bank’s efforts, the International Finance Corporation, a member of the World Bank Group, promised to expand its climate investments from the current 2.2 billion dollars a year to a goal of 3.5 billion dollars a year.

     

    Kim said it would also lead on leveraging an additional 13 billion dollars a year in private sector financing by 2020.

     

    The president, said under the plan, the Bank would quadruple funding for climate-resilient transport and integrate climate into urban planning through the Global Platform for Sustainable Cities.

     

    He said it would also boost assistance for sustainable forest and fisheries management.

     

    Kim said this has become imperative because climate change threatened to drive 100 million more people into poverty in the next 15 years.

     

    “Following the Paris climate agreement, we must now take bold action to protect our planet for future generations.

     

    The president said the bank is moving urgently to help countries make major transitions to increase sources of renewable energy and decrease high-carbon energy sources.

     

    Kim said it would also include developing green transport systems, building sustainable and liveable cities for growing urban populations.