IFC eyes $1.2bn investment pipeline for Ghana

The International Finance Corporation (IFC) of the World Bank Group is positioning to deepen its support for Ghana’s private sector, with a pipeline of about US$1.2 billion in potential investments across key sectors of the economy.

The IFC Managing Director, Makhtar Diop, made the disclosure after a meeting with Finance Minister Dr. Cassiel Ato Forson in Accra, where discussions focused on Ghana’s recent macroeconomic gains and opportunities to mobilise more private capital.

Mr. Diop commended the government for what he described as significant progress in macroeconomic management, particularly efforts to address inflation and debt challenges.

“In the last few years, Ghana has turned the tide. They have been able to do a solid adjustment, but also to put in place measures that will structurally, hopefully, help Ghana not to go back in a situation where the debt is a problem and inflation is affecting the economy.”

He said the progress had created an opportunity for Ghana to strengthen investor confidence and position itself as a more attractive destination for both domestic and international private capital.

According to Mr. Diop, the Finance Minister outlined several sectors in which the government wants the IFC to deepen its support, with energy, infrastructure and agriculture identified among the key priorities.

He disclosed that the IFC currently has a portfolio of about US$500 million in Ghana, alongside a pipeline of approximately US$1.2 billion, with the potential for further investments.

“We have now a portfolio of 500 million dollars, and we have a pipeline of 1.2 billion. But we will do more.”

Mr. Diop said the IFC was also looking to strengthen domestic businesses through its “Local Champion” initiative, which seeks to support investors from the continent to expand businesses within African markets.

Building a more resilient economy

The IFC Managing Director also called for greater local production as a strategy to strengthen Ghana’s resilience against external shocks, particularly amid heightened global and geopolitical tensions.

He said African economies needed to reduce their vulnerability to disruptions by identifying products that are currently imported but can be produced competitively on the continent.

“What I’m seeing right now is to see more and more how we can [take] things that were imported and can be produced in the continent at a competitive cost, produced locally,” he said.

Mr. Diop cited poultry production in Ghana as an example, noting that the country continues to import significant quantities of poultry despite the potential to expand domestic production.

He argued that strengthening local production would not only reduce exposure to external shocks but also support job creation and build a more resilient economy.

“One of the things that we have been doing is to be able to indigenise the production in certain sectors, which will be helping not only for job creation but to create a much more resilient economy and be able to be better prepared when shocks are happening.”

He identified pharmaceuticals, energy and other strategic sectors as areas where greater domestic production could contribute to economic resilience.

The comments come as the government seeks to consolidate recent macroeconomic improvements while pursuing measures to expand commercial agriculture, add value to locally produced commodities and create more jobs.

Dr. Cassiel Ato Forson has indicated that the government’s next phase of economic transformation will place greater emphasis on commercial agriculture, value addition and job creation.