The World Bank’s investment arm, the International Finance Corporation (IFC), has announced a major push to increase local-currency lending across African markets. The initiative aims to protect businesses and governments from exchange-rate shocks by providing financing in their own currencies rather than in U.S. dollars.
According to the IFC, currency mismatches remain a major challenge for African borrowers, especially when revenue is earned locally but debt is dollar-denominated. By expanding access to local-currency loans and strengthening domestic capital markets, the IFC hopes to make African economies more resilient to global financial volatility.
This move also aligns with the World Bank Group’s broader effort to deepen financial systems, enhance private sector participation, and reduce Africa’s dependency on foreign-currency debt, which has been a key source of fiscal strain in recent years.
