JOHANNESBURG, April 15 – The World Bank Group, through its private-sector arm, the IFC – International Finance Corporation and Citigroup Inc. have launched a 1.6 billion rand ($98 million) facility aimed at expanding local-currency financing in South Africa.
The facility is designed to strengthen IFC’s capacity to provide rand-denominated funding to private-sector borrowers, as development finance institutions intensify efforts to reduce foreign-exchange risks in emerging markets.
Local-currency financing is considered critical in developing economies, where companies typically generate revenues in domestic currency but often rely on foreign-currency loans, exposing them to exchange-rate volatility.
The new arrangement has already supported IFC’s anchor investment in an outcome-based bond issued by FirstRand Bank, linked to water infrastructure projects in Cape Town.
According to IFC Treasurer Jorge Familiar, the initiative reflects growing demand for financing structures that align with local revenue streams in an increasingly volatile global environment.
The deal builds on a similar local-currency facility launched in Kenya in 2024, demonstrating a scalable model for expanding domestic financing solutions across African markets.
Over the past decade, IFC has committed more than $33 billion in local-currency financing across 71 currencies, underscoring a broader strategy to deepen financial markets and improve risk management for businesses in developing economies.
