IFC, a member of the World Bank Group, has partnered with Standard Bank and Rand Merchant Bank (RMB) to help expand local currency financing for private businesses across Africa.
IFC will collaborate with Standard Bank and RMB on cross-currency swaps to manage currency exposure related to its local currency lending. This hedging allows IFC to lend in local currency at stable and competitive rates to private businesses in Botswana, Ghana, Kenya, Nigeria, Tanzania, Uganda, and Zambia.
“We are excited to partner with IFC on this initiative, which will play a crucial role in supporting the growth of private businesses across Africa,” said Reza Cassim, co-head of Global Markets at RMB. “This collaboration reinforces our commitment to enhancing local currency financing and managing currency risk, enabling businesses to thrive in their local markets.”
“There is growing interest in sub-Saharan countries with investors recognizing the region’s potential,” said Kayode Solola, Head of Global Markets Africa Regions at Standard Bank Group. “The agreement with IFC further entrenches Standard Bank’s ability to make a real difference in the countries in which we operate, allowing deeper participation of local stakeholders in their own economy.”
“Local currency financing is a key priority for IFC to boost economic growth and create jobs in Africa,” said Martin Habel, Head of Treasury Client Solutions EMEA at IFC. “By partnering with Standard Bank and RMB, we are increasing access to local currency financing to support local businesses in Africa, to drive economic growth, and to invest in critical development sectors.”
This partnership will facilitate over-the-counter cross-currency swaps between the entities. Standard Bank and RMB will offer these swaps to IFC by tapping into their extensive network of branches across Africa.
The agreements strengthen the IFC’s longstanding relationships with both banks, supporting efforts to address currency mismatch risks and expand access to local currency lending. In fiscal year 2024, IFC achieved a record $5.8 billion in local currency financing through 118 commitments in 34 currencies.