Infrastructure investments in Africa are important for the growth of the continent’s mining sector, says World Bank Group member the International Finance Corporation (IFC) in light of the significant investments it made in the region last year.
According to a media report in November last year, a senior IFC official said it planned to triple its lending in postconflict African countries by 2017.
It was reported that the IFC had invested $3.7-billion in Africa last year, up from about $700-million in 2006.
The IFC has a presence in 30 African countries, 18 of which are emerging from conflict. It has investments in a cross section of sectors, including air- lines, banking, telecoms, infrastructure, mining and agriculture.
IFC business advisory services VP Nena Stoiljkovic was reported to have said that the IFC would seek to tap into the high economic growth in many of these nations after years of underinvestment during civil strife.
“Considering the kind of growth expected in Africa, it’s a place in which we would like to invest more,” he said.
An example of such an investment was the IFC’s £1.3-million funding to Aim- and ASX-listed Nyota Minerals in July last year to advance its 924 000 oz Tulu Kapi gold project, in Ethiopia.
Further investments on the African continent include an agreement between the IFC and Norwegian photovoltaic systems company Scatec Solar to develop solar power projects in parts of West Africa and Central Africa.
These projects will supply renewable energy to deal with the electricity demands of those regions.
Meanwhile, IFC Africa and Latin America director of infrastructure and natural resources department Bernard Sheahan will present a keynote address on the challenges and opportunities facing African mining at this year’s Investing in African Mining Indaba.
Sheahan is responsible for the IFC’s investments in Latin America and sub- Saharan Africa in power, transport, utilities, telecommunications and the extractive industries.