IFC announces major investments in African financial institutions

The International Finance Corporation (IFC) has announced two significant investment initiatives aimed at boosting private sector growth and credit access across Africa.

In one agreement, the IFC is partnering with SUNU Investment Holding (SIH), the banking arm of the pan-African SUNU Group. The investment, which could reach up to $29 million, is intended to strengthen the holding company's equity, support subsidiary development, and improve credit access for small and medium-sized enterprises (SMEs), with a specific focus on businesses led by women.

Separately, the IFC has proposed a commitment of up to $30 million to the Capital Alliance Private Equity Fund V (CAPE V), sponsored by African Capital Alliance (ACA). The IFC is also considering an additional $20 million co-investment facility. The CAPE V fund aims to raise between $500 million and $750 million to target mid-sized companies in sub-Saharan Africa, focusing on sectors with high growth potential through controlling or significant minority stakes.