Thursday, 20 May 2021: As part of efforts to boost Africa’s recovery from the pandemic, the International Finance Corporation, (IFC), a subsidiary of the World Bank is set to shell out $2 billion to support small businesses in Africa and boost international trade.

Despite the lesser effect of the pandemic on Africa, health wise compared to the United States, Europe, and India; economically, businesses have greatly been affected. Sub-Saharan Africa is set to record the slowest economic growth of any world region this year.

In a statement released by the IFC, half of the money would be invested in new direct financing for micro, small and medium enterprises, including via mezzanine financing and risk-sharing instruments, while the other $1 billion will be to support international trade finance “to facilitate the flow of imports and exports of essential goods, including food and medical products”.

According to the IFC’s Managing Director, Makhtar Diop, “This is a critical time for people, businesses, and economies across Africa. Long-term recovery will depend on getting funding to the pillars of the economy that need it today,”

The statement also said that the initiatives will be open to public and private partners.

The IFC last year announced a global $8 billion fast-track financing facility for help existing clients and their countries’ economies during the pandemic.More than half has already been deployed, the IFC said, with more than 30% going to IFC clients in Africa.