The World Bank Group, through its private-sector arm the International Finance Corporation (IFC), and Citi have signed a new 1.6 billion South African rand borrowing facility that will expand IFC’s ability to provide local currency financing in South Africa.
This facility adds to the World Bank Group’s suite of local currency financing instruments, strengthening its capacity to support private sector development. The facility has supported IFC’s anchor investment into the Cape Water outcome-based bond issued by South Africa’s FirstRand Bank – the first outcome bond issued by a commercial bank globally.
“Local currency financing and capital markets development in emerging and developing markets are critical priorities for the World Bank Group.” said Jorge Familiar, Vice President and World Bank Group Treasurer. “This facility is another example of what our partnerships with the private sector can deliver — from outcome bonds to local currency solutions — in support of long-term finance for job creation.”
This facility builds on a similar one established in Kenyan Shilling (KES) that IFC and Citi signed in 2024.The two institutions plan to continue replicating the facility across additional countries.
“This facility deepens our partnership with the World Bank Group,” said Stephanie von Friedeburg, Global Head of Citi’s Public Sector Group. “Following our Kenyan shilling transaction, this first South African rand facility reflects a model that can be replicated throughout emerging markets. It adds to the toolkit for development finance institutions and supports local currency financing where it is needed most.”
Currency volatility remains one of the most important priorities for private sector development in emerging markets. Deep and liquid capital markets are essential to ensuring access to local currency financing for development priorities — and by supporting new instruments in local capital markets, the World Bank Group contributes to the further deepening of those markets. Over the last decade, IFC has committed more than $33 billion in local currency financing across 71 local currencies.
Africa Fact: Kumbi Saleh, the capital of Ancient Ghana, flourished from 300 to 1240 AD. Located in modern day Mauritania, archaeological excavations have revealed houses, almost habitable today, for want of renovation and several storeys high. They had underground rooms, staircases and connecting halls. Some had nine rooms. One part of the city alone is estimated to have housed 30,000 people.
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Polo Leteka always had an entrepreneurial spirit, but couldn\’t quite decide on which direction to go in. She spent several years in the private and public sectors, and during her tenure in Government she knew she wanted to have a greater impact on helping South Africans follow their dreams by becoming entrepreneurs. She launched Capital Partners, an SME enterprise advisory and fund managing service firm. She brought two partners into the business to expand the services they could offer. Leteka went on to become one of the \”dragons\’ on the South African edition of Dragons\’ Den, investing in start-up businesses.