DFC approves new investments in Africa
In the first quarter of 2023, the US International Development Finance Corporation (DFC) approved several new Africa-related transactions. The transactions will support US foreign policy and development priorities, including enabling sustainable infrastructure and energy security, advancing food security and agricultural innovation, supporting small businesses, and improving healthcare.
The following African transactions were approved:
– Supporting entrepreneurs in Africa building agriculture and climate solutions: A $25 million equity investment in Novastar Africa People + Planet Fund, a fund that backs entrepreneurs with the capability to build and scale innovative solutions to address climate change and support agriculture and climate resilience across sub-Saharan Africa.
– Expanding access to energy in Africa: A $10 million loan to a technology and financing platform operating in Africa will finance long-term working capital to expand the supply of solar home systems to households and small businesses, providing hundreds of thousands of people with electricity.
– Bolstering agricultural enterprises in northern Ghana: A $10 million loan portfolio guaranty to a local lender will promote lending to small and medium-sized enterprises (SMEs) and rural community banks supporting agribusiness in Ghana, particularly in northern regions of Ghana that face high rates of poverty and malnutrition, with support from USAID.
– Strengthening agricultural value chains in northern Ghana: With support from USAID, a $2.5 million loan portfolio guaranty to a local lender will support agricultural microenterprises and smallholder farmers, particularly in regions of northern Ghana that face high rates of poverty and malnutrition.
– Boosting medical oxygen supply for healthcare in Kenya: A $10 million loan to Hewa Tele Limited will help expand production and distribution of affordable liquid medical oxygen for hospitals and clinics across Kenya, lowering costs for healthcare providers in rural and urban areas.
– Enhancing infrastructure in Lesotho: A $7.3 million loan to African Hotel Infrastructure Fund Maseru (PTY) Ltd, or an entity to be created, will aid in the construction and operation of a Maseru-based hotel, providing local economic and employment opportunities.
– Increasing economic opportunity for underserved communities in Uganda: With support from USAID, a $9 million loan portfolio guaranty to a local lender will support loans to refugees and host communities in Uganda improving livelihoods.
Many of these investments are subject to Congressional Notification.