IFC in talks to attract new infrastructure investment in Burkina Faso

The IFC said its vice-president for economics and private sector development, Hans Peter Lankes, discussed opportunities for the corporation to “scale up its engagements” in Burkina Faso across sectors including energy, trade, mining, water, information and communications technology and transport. Lankes “also met several IFC clients and other members of the business community”, the IFC said.

“Burkina Faso is an important market for IFC as (political) stability returns and the new government looks to the private sector to lead economic growth,” Lankes said. “Burkina Faso is a country where IFC seeks to play a major role with our World Bank group and other partners to deliver new solutions that reduce the risk for the private sector and drive more investment activity.”

The IFC, which has been active in Burkina Faso since 1975, has a portfolio there of $100 million of investments in financial services, real estate, mining, agribusiness, energy and retail.

According to the IFC, while “many investors were reluctant to engage during the recent political crisis, the corporation increased its commitments to Burkina Faso, investing $200m in multiple projects during the ensuing transition period”.

Organisations that have benefited from IFC support include the national cotton producer Sofitex. Over the last two years, the IFC said it has invested an additional $70m in the country and “now aims to scale up its investments substantially, targeting $800m over the next five years in bankable projects to support the country’s national economic and social development plan for the period 2016-2020.

Western Africa is becoming an increasingly attractive regional market for “dynamic impact investing’’ on the continent, according to a report published last year.

The ‘Landscape for Impact Investing in West Africa’ (56-page / 1.62 MB PDF) report – by the Global Impact Investing Network and global development advisors Dalberg, supported by the UK Department for International Development’s ‘impact programme’ – said the region is a “perfect example of a region where challenges and opportunities collide”.

According to the report, “continued political stability and security for Benin and Burkina Faso”, together with the start of oil production in Ghana and Cote d’Ivoire, is contributing to all four countries’ ability to increase foreign direct investment “at a time of regional decline”.

Last December, the African Development Bank (AfDB) approved funding for a major infrastructure project designed to boost access to broadband internet across Burkina Faso, Niger and Nigeria.

The AfDB said it had given the green light to issue a loan of €31.4m and a grant of €12.5m to finance Niger’s component of the overall 1,510-kilometre trans-Saharan dorsal (SDR) fibre optic broadband project.