Latest news with #Diop
eNCA
04-07-2025
- Business
- eNCA
World Bank's IFC ramps up investment amid global uncertainty
WASHINGTON - While the world economy faces instability from US President Donald Trump's threats of a global trade war, the International Finance Corporation (IFC) is dramatically ramping up its investment activities. The Washington-based IFC -- the World Bank's private sector arm -- mobilises private capital and provides financing to support businesses across emerging economies. Though not widely known outside development circles, the organisation plays a crucial role in creating jobs and supporting growth in less developed regions. "The world economy has been going through a bit of a turbulent time, but what I must say is that even though there is turbulence... we are seeing a lot of interest in investing in emerging countries," Makhtar Diop, the IFC's managing director, told AFP. This optimism is backed by concrete numbers. In the fiscal year ending June 30, preliminary data shows that the IFC committed over $71 billion -- nearly double its commitment from just three years ago and a significant jump from last year's record of $56 billion. The investment spans the globe, with more than $20 billion flowing to Latin America, $17 billion to Asia, and $15.4 billion to Africa. The dramatic increase stems from a deliberate strategic shift. Diop, an economist and former Senegalese finance minister, explained that the IFC has focused on becoming "simpler, more agile, and delegating decision-making to our teams that are in the field." This approach abandons the over-centralised structure that previously "was slowing down our ability to respond and seize new opportunities." The timing is significant. As Western economies pull back from direct aid to developing countries -- constrained by mounting debts, rising defense budgets, and increasingly inward-looking politics -- the IFC has accelerated. "It's totally understandable that they have fewer resources to make available in the form of grants to developing countries," Diop acknowledges. However, he emphasized that World Bank funding for the world's poorest countries remains fully replenished, calling it "the most efficient and best way to support countries." The IFC's expanding role within the World Bank Group is evident. Today, its funding nearly matches the support the bank provides directly to governments, making it an equal partner in development efforts. The organisation is also attracting new types of investors. Many co-financing partners now come from regions that traditionally haven't invested outside their home areas. The IFC's largest renewable energy investment in Africa, for example, was completed with a Dubai-based company. These investors trust the IFC not only for its market knowledge but also for the risk-mitigation tools it offers, Diop said. In Africa, particularly, the IFC pursues a strategy of identifying and supporting "national champions" -- successful local companies that need help to become more competitive and globally integrated. A significant portion of the IFC's mandate involves sustainability projects, an area where Diop decries debates with false choices between economic development and the environment, especially in electricity projects that form an important part of the agency's portfolio.
Int'l Business Times
03-07-2025
- Business
- Int'l Business Times
World Bank's IFC Ramps Up Investment Amid Global Uncertainty
While the world economy faces instability from US President Donald Trump's threats of a global trade war, the International Finance Corporation (IFC) is dramatically ramping up its investment activities. The Washington-based IFC -- the World Bank's private sector arm -- mobilizes private capital and provides financing to support businesses across emerging economies. Though not widely known outside development circles, the organization plays a crucial role in creating jobs and supporting growth in less developed regions. "The world economy has been going through a bit of a turbulent time, but what I must say is that even though there is turbulence... we are seeing a lot of interest in investing in emerging countries," Makhtar Diop, the IFC's managing director, told AFP. This optimism is backed by concrete numbers. In the fiscal year ending June 30, preliminary data shows that the IFC committed over $71 billion -- nearly double its commitment from just three years ago and a significant jump from last year's record of $56 billion. The investment spans the globe, with more than $20 billion flowing to Latin America, $17 billion to Asia, and $15.4 billion to Africa. The dramatic increase stems from a deliberate strategic shift. Diop, an economist and former Senegalese finance minister, explained that the IFC has focused on becoming "simpler, more agile, and delegating decision-making to our teams that are in the field." This approach abandons the over-centralized structure that previously "was slowing down our ability to respond and seize new opportunities." The timing is significant. As Western economies pull back from direct aid to developing countries -- constrained by mounting debts, rising defense budgets, and increasingly inward-looking politics -- the IFC has accelerated. "It's totally understandable that they have fewer resources to make available in the form of grants to developing countries," Diop acknowledges. However, he emphasized that World Bank funding for the world's poorest countries remains fully replenished, calling it "the most efficient and best way to support countries." The IFC's expanding role within the World Bank Group is evident. Today, its funding nearly matches the support the bank provides directly to governments, making it an equal partner in development efforts. The organization is also attracting new types of investors. Many co-financing partners now come from regions that traditionally haven't invested outside their home areas. The IFC's largest renewable energy investment in Africa, for example, was completed with a Dubai-based company. These investors trust the IFC not only for its market knowledge but also for the risk-mitigation tools it offers, Diop said. In Africa particularly, the IFC pursues a strategy of identifying and supporting "national champions" -- successful local companies that need help to become more competitive and globally integrated. A significant portion of the IFC's mandate involves sustainability projects, an area where Diop decries debates with false choices between economic development and the environment, especially in electricity projects that form an important part of the agency's portfolio. "It happens that today, you don't have to make that trade-off because the sustainable solutions are often the cheaper ones, and that's the beauty of what we are seeing," he said. While fossil fuel generation remains part of the energy mix to ensure grid stability, the economics increasingly favor clean alternatives. Behind all these investments lies an urgent demographic reality: 1.2 billion young people will reach working age in developing countries over the next decade. For the World Bank, creating employment for this massive cohort is paramount. "The first question of any leader you meet from the developing world is how can you help to create jobs for young people?" Diop observed. Beyond infrastructure development that stimulates broader economic activity, Diop identifies tourism, pharmaceuticals, and agriculture as the most promising sectors for job creation. These industries can offer the scale and growth potential needed to absorb the coming wave of young workers entering the global economy.
Ya Biladi
18-06-2025
- Business
- Ya Biladi
IFC Chief Makhtar Diop meets Morocco's Head of Government, discuss stronger private sector
The Managing Director of the International Finance Corporation (IFC), Makhtar Diop, met on Tuesday with Morocco's Head of Government, Aziz Akhannouch, during a four-day visit to reaffirm IFC's commitment to supporting the country. The visit, running from June 17 to 20, aims to consolidate a long-standing partnership and clarify priorities to stimulate economic growth through a stronger role for the private sector. During their meeting, Diop and Akhannouch discussed «working to build a more dynamic, inclusive, and resilient private sector, rich in opportunities for Moroccans». Très heureux de m'être entretenu avec M. Aziz Akhannouch, Chef du gouvernement du #Maroc, pour réaffirmer l'engagement d' @IFC_fr à intensifier son appui au pays. Ensemble, nous œuvrons à bâtir un secteur privé plus dynamique, inclusif et résilient, riche en opportunités pour les… — Makhtar Diop (@Diop_IFC) June 17, 2025 On the same day, Diop also held talks with Saham Group chairman Moulay Hafid Elalamy. «Many avenues for collaboration were identified, with a strong desire to strengthen our partnership, particularly in the financial sector, both in Morocco and across the continent», he wrote on X. Diop, accompanied by Ethiopis Tafara, IFC's Vice President for Africa, will also meet other key officials, including Finance Minister Nadia Fettah and Bank Al-Maghrib Governor Abdellatif Jouahri. The discussions will emphasize investment in high-potential sectors such as sustainable agriculture, manufacturing, infrastructure, services, and cultural industries, as well as advancing regional integration to reinforce Morocco's role as a hub for connectivity and innovation in Africa, according to a press release. He is also expected to sign an agreement to accelerate Morocco's digital transformation, a crucial driver for boosting economic opportunities and inclusive growth.
Middle East
17-06-2025
- Business
- Middle East
Egypt to see investments pour in once reforms implemented
CAIRO, June 16 (MENA) - Managing Director of the International Finance Corporation (IFC), the private sector arm of the World Bank Group, Makhtar Diop stressed that now is an ideal time for reforms in Egypt. "Now is an ideal time for reforms in Egypt. The world is looking at Egypt due to its stability and market trust," Diop told Ahram Online in an interview on the margins of the "Development Finance for Private Sector Empowerment: Economic Growth and Employment" conference, organized by the Ministry of Planning on Monday. "Once reforms aimed at simplifying processes and creating a level playing field are implemented, investments are expected to pour in," Diop added, noting that the IFC is committed to supporting Egypt's efforts towards a decisive transition to private sector-led economy. Asserting the IFC's support for Egypt's efforts in the Micro, Small, and Medium Enterprises (MSMEs) sector, Diop said this support is largely through banking solutions such as providing special credit lines. 'The IFC is now working with non-banking financial institutions to reach more MSMEs and provide easier access to finance, which is a new direction in their strategy,' he said. 'Since 2020, IFC has committed more than $850 million to MSMEs in Egypt through both financial and non-financial banking institutions, including equity. It focused on those led by women, helping them build businesses that foster innovation and strengthen communities,' Diop added. As for the tourism industry, Diop said this sector is poised to play a crucial role in Egypt's economic recovery, offering substantial potential for diversification and growth. 'Egypt can tap into new visitor demographics by broadening its attractions to include cultural and health tourism and creating more sustainable revenue streams,' he added. "The IFC is actively engaging with tourism projects to upgrade infrastructure and implement sustainable practices, such as the EDGE Advanced Green Building Certification for the Grand Egyptian Museum,' Diop said. Diop also emphasized the IFC's keenness to empower Egyptian firms to leverage their capabilities and expand their operations across the continent, particularly in the construction and infrastructure sectors. 'By building capacity and instilling best practices, we can position Egyptian companies to engage successfully in pan-African projects,' Diop said. 'This not only bolsters their growth prospects but also fosters regional collaboration and integration, ultimately advancing economic development across Africa,' he added. 'By facilitating partnerships and knowledge transfer, the IFC aims to create a robust ecosystem where Egyptian enterprises can thrive and contribute to the collective growth and prosperity of the continent," he noted. As for the healthcare industry, Diop said Egypt holds immense potential for growth, highlighting IFC plans to enhance collaboration with private healthcare providers to improve service delivery, accessibility, and affordability. 'We support investments in health infrastructure, medical technology, and healthcare professionals' training,' Diop said. (MENA) M A A/R G E
Al-Ahram Weekly
16-06-2025
- Business
- Al-Ahram Weekly
INTERVIEW - IFC committed to supporting Egypt transition to private-sector-led economy: Makhtar Diop - Economy
Ahram Online has exclusively interviewed Makhtar Diop, managing director of the International Finance Corporation (IFC), during his visit to Egypt to explore how the corporation is partnering with Egypt to drive investment, enhance connectivity, and unlock the full potential of key sectors, from aviation and tourism to renewable energy and MSMEs. As Egypt charts a path toward greater economic resilience, the role of strategic partnerships and private sector engagement has never been more critical. Asset monetization and infrastructure development are emerging as cornerstones of the country's transformation agenda, and global institutions are stepping in to support and guide this transition. Since beginning operations in Egypt nearly 50 years ago, IFC has invested and mobilized almost $10 billion in investment projects, with an advisory portfolio amounting to $25 million in the country. Diop's insights highlighted the pivotal reforms shaping Egypt's economic future and the opportunities they create locally and across the African continent. Ahram Online: What were the key highlights of your meeting with the Egyptian president regarding the asset monetization programme? Makhtar Diop: The meeting highlighted a crucial phase in Egypt's economic strategy, focusing on the asset monetization programme. The president reiterated the government's commitment to this initiative, emphasizing its potential to invigorate the economy. We discussed the proposal to begin with the monetization of 11 airports, a strategic move to optimize state assets. We plan to launch tenders for the first airport by the end of 2025, marking a significant step forward. Our conversation underscored the benefits of a portfolio approach. This approach allows for the simultaneous management of multiple assets, thus minimizing the risks associated with dependence on a single transaction. By successfully executing the first transaction, we aim to instill confidence in the investment community and illustrate the viability and robustness of the broader monetization programme amid fluctuating political and economic landscapes. We also discussed how to deepen collaboration between Egypt and the African countries. President El-Sisi emphasized the importance of African collaboration in addressing various challenges such as economic development, security, and climate change. His leadership aims to strengthen ties within the continent through initiatives that promote investment, trade, and partnerships among African nations. AO: The IFC is assigned as the technical advisor to the Egyptian government for the planned offering of 11 airports. Could you please expand on this? MD: Egypt's 11 airports play a vital role in the nation's connectivity, facilitating domestic and international travel and serving as critical gateways for tourism, trade, and investment. The airports are strategically located to enhance access to major cities, archaeological sites, and scenic destinations, contributing to Egypt's economy, which heavily relies on tourism. Additionally, improved airport facilities enable better cargo transportation, boosting trade activities. The airports are essential for Egypt's thriving tourism sector, significantly contributing to the economy. They provide access to historically rich areas like Cairo, Luxor, and Aswan, as well as coastal destinations such as Sharm El-Sheikh and Hurghada. By increasing flight availability and improving facilities, these airports can attract more international visitors, thereby enhancing economic revenue from tourism, creating jobs, and supporting local businesses. Infrastructural improvements such as modernizing terminal facilities, expanding runways, and upgrading baggage handling systems are crucial for enhancing airport efficiency. Investments in technology, like automated check-ins and advanced security measures, can streamline passenger processing. Additionally, expanding capacity to accommodate more flights and passengers will help support the growth in air traffic expected as tourism rises. IFC provides financing, technical expertise, and strategic guidance for airport development projects. This includes mobilizing private sector investments through public-private partnerships (PPPs) that can leverage domestic and international resources. The IFC can also assist in improving operational efficiencies and enhancing the overall passenger experience. AO: How can upgrades to airports impact Egypt's economy? MD: Upgrading airports can significantly impact Egypt's economy by fostering growth in tourism and trade, reducing travel time and costs, and improving logistics capabilities. By attracting more international flights, Egypt can boost tourism revenues, create jobs in the hospitality and service sectors, and drive demand for local goods and services. Enhanced air cargo capabilities can also improve the efficiency of exporting Egyptian products, strengthening the economy. Strategic partnerships with international airport operators, airlines, and logistics companies can bring valuable expertise and operational efficiencies to airport development. AO: How is the IFC planning to assist Egypt in transitioning from a state-driven economy to a private-sector-led model? MD: The IFC is fully committed to supporting Egypt's critical transition from a state-driven economy to a private-sector-led one. Our approach involves not only funding but also addressing bureaucratic hurdles that currently deter private investment. In my meetings with government ministers, they told me that they have identified regulatory simplification as fundamental, which includes streamlining processes and cutting redundant fees and taxes – IFC is supportive of this. Accordingly, we can help create a more business-friendly environment. Collaborative engagements with key ministries, such as the Ministry of Investment and the Ministry of Public Business Sector, are pivotal as they identify state-owned enterprises (SOEs) that could be considered for monetization and strategize on enhancing the governance and operational efficiencies of those remaining under state control. Our comprehensive framework aims to establish an enabling ecosystem that encourages private sector participation, thus driving sustainable economic growth and creating jobs for the Egyptian population. AO: What sectors were identified for investment and growth during your discussions with the Egyptian president? MD: During our discussions, several sectors emerged as high-potential areas for investment and growth. Tourism: We emphasized the importance of diversifying tourism offerings beyond traditional models. Egypt can leverage its rich historical and cultural assets by developing cultural, health, and business tourism. Initiatives to enhance tourist experiences can sustain revenue even during global fluctuations. We emphasized the importance of diversifying tourism offerings beyond traditional models. Egypt can leverage its rich historical and cultural assets by developing cultural, health, and business tourism. Initiatives to enhance tourist experiences can sustain revenue even during global fluctuations. Construction: Egyptian construction firms have significant potential to expand into other African markets, particularly as the continent faces a growing demand for infrastructure improvements. This would benefit local companies and strengthen regional ties. Egyptian construction firms have significant potential to expand into other African markets, particularly as the continent faces a growing demand for infrastructure improvements. This would benefit local companies and strengthen regional ties. Agriculture: We explored strategies to revitalize the agricultural sector, tapping into Egypt's historical strengths, particularly in crops like cotton. Innovations and investments in modern agricultural techniques could significantly enhance productivity and sustainability. We explored strategies to revitalize the agricultural sector, tapping into Egypt's historical strengths, particularly in crops like cotton. Innovations and investments in modern agricultural techniques could significantly enhance productivity and sustainability. Trade and Integration: The discussions also focused on the importance of African integration. By leveraging the African Free Trade Agreement, we can boost inter-African trade and reduce reliance on non-African markets, enhancing economic resilience and collaboration. AO: What strategies are being proposed to enhance trade among African nations, and how does the IFC plan to support this? MD: The IFC spearheads the African Trade Initiative, which aims to strengthen trade relationships across African nations. Key strategies include enhancing the capacity of local banks to provide trade financing, thereby minimizing reliance on foreign banking systems, which can be a bottleneck for trade. By facilitating direct banking relationships and providing innovative funding solutions, we can streamline the flow of goods and services across borders. Additionally, we are focused on creating platforms for knowledge exchange and collaboration among businesses, fostering a cooperative environment that not only boosts trade volume but also enhances overall economic resilience across the continent. AO: What potential does the tourism sector have for economic recovery in Egypt, and how does the IFC plan to engage with it? MD: The tourism sector is poised to play a crucial role in Egypt's economic recovery, offering substantial potential for diversification and growth. Egypt can tap into new visitor demographics by broadening its attractions to include cultural and health tourism and creating more sustainable revenue streams. The IFC is actively engaging with tourism projects to upgrade infrastructure and implement sustainable practices, such as the EDGE Advanced Green Building Certification for the Grand Egyptian Museum. These initiatives not only promote cultural tourism but also enhance Egypt's profile as a destination for health tourism, leveraging its high-quality medical services. Our support is focused on developing frameworks that sustain long-term growth in tourism, benefiting both the economy and local communities. AO: How does the IFC view the role of Egyptian companies in the context of broader African development? MD: The IFC is keen to empower Egyptian firms to leverage their capabilities and expand their operations across the continent, particularly in the construction and infrastructure sectors. By building capacity and instilling best practices, we can position Egyptian companies to engage successfully in pan-African projects. This not only bolsters their growth prospects but also fosters regional collaboration and integration, ultimately advancing economic development across Africa. By facilitating partnerships and knowledge transfer, the IFC aims to create a robust ecosystem where Egyptian enterprises can thrive and contribute to the collective growth and prosperity of the continent. AO: How can the IFC help stimulate private sector engagement in renewable energy projects in Egypt? MD: The IFC recognizes the significance of renewable energy in Egypt's quest for sustainable economic growth and energy independence. By facilitating investments in solar and wind projects, which have vast potential given Egypt's geographical advantages, we aim to enhance energy resilience. Our strategy includes conducting feasibility studies, mobilizing public-private partnerships, and providing technical assistance to attract private developers. Moreover, we are working closely with the government to enhance regulatory frameworks and create incentives for private investments in renewables. By fostering an investment-friendly environment and supporting innovative financing mechanisms, such as green bonds, we can stimulate substantial private sector engagement in renewable energy, contributing to job creation and reducing carbon footprints. AO: What is the potential of the healthcare sector in Egypt, and how can the IFC contribute to its development? MD: The healthcare sector in Egypt holds immense potential for growth, especially as demand for quality healthcare services expands. The IFC plans to enhance collaboration with private healthcare providers to improve service delivery, accessibility, and affordability. We support investments in health infrastructure, medical technology, and healthcare professionals' training, aiming to uplift the country's overall healthcare standards. AO: What are the key aspects discussed during your meeting with the Egyptian minister of investment and external trade? MD: The minister was very keen on IFC's plans to ramp up its equity portfolio in Egypt and worldwide. He was also interested in hearing about our new guarantee offering through MIGA, the risk insurance arm of the World Bank Group. We plan to triple our guarantee level to $20 billion by 2030. The discussions also touched upon scaling up efforts on local currency financing and increased mobilization. Today, for each dollar IFC invests, we mobilize two from other investors. We aim to raise this ratio in the very near future. AO: How does the IFC support Egypt's efforts in the Micro, Small, and Medium Enterprises (MSMEs) sector? MD: The IFC supports Egypt's efforts in the MSME sector largely through banking solutions such as providing special credit lines. Additionally, the IFC is now working with non-banking financial institutions to reach more MSMEs and provide easier access to finance, which is a new direction in their strategy. Since 2020, IFC has committed more than $850 million to MSMEs in Egypt through both financial and non-financial banking institutions, including equity. It focused on those led by women, helping them build businesses that foster innovation and strengthen communities. AO: If you have a message at the end of this interview, what would it be? And to whom would you send it? MD: Now is an ideal time for reforms in Egypt. The world is looking at Egypt due to its stability and market trust. Once reforms aimed at simplifying processes and creating a level playing field are implemented, investments are expected to pour in. Follow us on: Facebook Instagram Whatsapp Short link:
