World Bank Financing Lusophone Countries.

A International Finance Corporation, an institution of the World Bank, intends to increase the volume of financing in Portuguese-speaking countries, as part of the institution's commitment to projects on the continent, stated the institution's vice-president.

In an interview with Lusa, Sérgio Pimenta explained that:

“Africa is a priority for the International Finance Corporation (CFI), especially in Portuguese-speaking countries, where there is still a reduced customer base”.

Sérgio Pimenta participated in the summit of the Community of Portuguese Speaking Countries (CPLP), held last week in São Tomé and Príncipe, to dialogue with partners and promote the organization, which only works with the private sector, unlike the World Bank, which supports public projects.

CFI already has an office in Mozambique, opened an office in Angola four years ago and has had a new connection point in Cape Verde since the beginning of the year.

“In recent years, we have invested over US$4 billion (€3,7 billion) in Portuguese-speaking countries in Africa”.

“and to that we add almost 1 billion dollars (920 million euros) in short-term lines”, he explained.

Most funded projects are in Mozambique and, to a lesser extent, in Angola.

“But this year, for example, we made our first long-term investments in Cape Verde”.

“And I am very excited to see that, both in São Tomé and Príncipe and in Guinea-Bissau, we now have opportunities that I believe will materialize in the coming months”. 

“The International Finance Corporation is the institution of the World Bank Group that supports private sector development.”

“We are a legally separate entity, we have our own balance sheet, we raise our own financial resources in the market and we invest these financial resources in private sector companies in developing countries.”

Sérgio Pimenta explained, noting that the organization also provides support and advice to companies or governments in investment or management projects.

"In the financial year just ended, we provided record funding in Africa, with more than 11 billion dollars (10,2 billion euros)".

A value "never before achieved“, he emphasized, noting that, in many cases, these projects are in smaller countries where this funding is decisive.

Companies with candidate projects or banks that need to complement third-party loans can access financing. CFI also partners with development institutions.

However, Sérgio Pimenta points out that one of the main focuses of the institution is to identify weaknesses and seek financing solutions:

“We see a problem, we see a development problem that hasn't been resolved, and we say 'OK', how do we find a solution?”

An example of this was what was done during the pandemic, when the CFI supported the production of vaccines in African companies, as part of the priorities of international organizations for the continent.

“I prefer to invest in Africa than in another continent”.

Said Sérgio Pimenta, who also praised the project for a continental free trade area.

This project "will completely change the business fabric of the continent", admitting that the project will take "some time“, as happens in other parts of the world.

“What I find interesting is that it is primarily a political project, but then it is also an economic project.”

“And it is a project that African companies are embracing much more strongly than previously thought,” he said.

For the free trade area to materialize, it is necessary to resolve internal procedures, transport and logistics.

"All of this needs to be simplified”, he considered, arguing that African companies are increasingly investing in a “intra-African dimension".

As for countries like Angola or Equatorial Guinea, whose economies depend heavily on oil exploration, Sérgio Pimenta considered that “diversifying the economy is what brings resilience” to countries in the face of crises.

"It is important to have this resilience. It's important to have this diversification now” which must be articulated at the regional level in the continent.

"One of the themes that we are strongly encouraging is what we call regional value chains“, seeking to transform the raw materials collected not necessarily in the country of origin, but at a regional level.

The objective is to maintain part of the value chain associated with the exploitation of commodities in each region.