The International Finance Corporation has set a target to connect 300 million Africans to electricity by 2030 while expanding credit access for small businesses that generate the majority of jobs on the continent but remain largely underfinanced.
IFC Vice President for Africa Ethiopis Tafara outlined the strategy at a press roundtable Thursday in Nairobi, emphasizing the need to mobilize domestic capital rather than relying solely on development finance. The briefing preceded the Africa Financial Summit scheduled for November 3-4 in Casablanca, where financial sector leaders will discuss channeling African savings into local investments.
“Across Africa, our priority is to unlock private capital at a scale that can truly transform economies,” Tafara said. “That means going beyond what development institutions can finance alone and creating the right conditions for investors to back ventures that drive inclusive growth.”
Electricity Access and Renewable Energy Push
IFC identified a gap of 600 million people across Africa without electricity access and committed to reducing that number by half within five years. The M300 initiative includes partnerships with governments like Kenya’s, which aims to achieve 100 percent renewable energy by 2030.
The electricity push forms part of IFC’s broader infrastructure strategy targeting energy, agribusiness, manufacturing, and tourism as high-impact sectors for job creation and economic growth.
SME Financing Innovations
Small and medium enterprises generate 80 to 90 percent of jobs in many African economies but face persistent challenges accessing affordable credit. IFC is testing new models to address traditional lending barriers, particularly in agriculture where smallholder farmers have historically been locked out of formal financing.
Through partnerships with agricultural technology companies, IFC is piloting a data-driven approach. Ag-tech firms use satellite imagery to assess farmer needs, providing seeds and machinery while collecting production and repayment data. This information is digitized and made available to banks for credit assessment.
“They use satellite imagery to determine what smallholder farmers may need to produce a product, and then they provide them with seeds, machinery,” Tafara explained. “Banks use that data to undertake better credit assessments, and they’re finding that this additional information helps them make decisions that will lead to greater financing.”
IFC backs these initiatives by taking first-loss positions, absorbing initial risks to encourage bank participation. Last year in Kenya, IFC provided $140 million to a partner bank specifically for SME lending expansion.
Regional Investments and Local Currency Lending
IFC’s Africa portfolio totaled $17 billion as of 2025, with Kenya accounting for $1.3 billion as of August 31. The Kenya portfolio supports job creation, energy access, infrastructure, manufacturing, agribusiness, financial services, and digital connectivity. IFC is also delivering $65 million in advisory programs focused on agribusiness, affordable housing, manufacturing, and small businesses.
In Tanzania, IFC invested in the first gender bond issued in sub-Saharan Africa and the country’s first green and sustainability bonds. In Ethiopia, the institution provided its first local currency loan to Vision Fund Microfinance, expanding credit access for small businesses while testing similar approaches in Kenya.
De-Risking Strategy for Foreign Investment
Tafara, appointed in May 2025 and now based in Nairobi, oversees operations across the continent with nearly 800 staff. He positioned IFC’s co-investment strategy as a way to demonstrate that African markets carry manageable risks for private investors.
“The risks are not as great as people think,” Tafara said. “Investing alongside us is probably a safer bet than investing on their own. But ultimately, what we like to do is demonstrate that investing alongside us helps. Others will see the success of investments, and at some point they should know the risks themselves.”
Summit Focus on Domestic Capital Mobilization
The upcoming Africa Financial Summit will convene over 1,000 participants including bankers, insurers, fintech operators, capital markets players, and policymakers. IFC, as co-host with Jeune Afrique Media Groupe, will showcase financial tools designed to convert local capital into productive investments.
The summit represents the fifth edition of the annual event, which alternates between Francophone and Anglophone African locations.
Tafara emphasized the strategic importance of strengthening banks, insurance companies, fintech platforms, and capital markets to meet infrastructure and small business financing needs. “At the end of the day, what we’re trying to do is make sure that we have a strong financial system to support the real economy,” he said.
In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries worldwide, leveraging private sector solutions for development objectives.