COVID-19: IFC moves to support Nigerian businesses hit by the pandemic

The COVID-19 pandemic continues to wreak havoc on businesses across Africa and the globe, prompting international and development finance institutions to step in and provide support. In a recent interview with CNBC Africa, Eme Essien Lore, the Nigeria Country Manager at the International Finance Corporation (IFC), discussed the institution's strategies for Nigeria amidst the pandemic. Essien Lore commended African governments for their quick responses to the crisis, implementing measures to slow the rate of infection and support struggling businesses. However, she highlighted the challenges of poor access to water, sanitation, and fragile health systems that governments are grappling with. In response to these challenges, Essien Lore emphasized the importance of multilateral institutions working together to provide both short-term response and long-term recovery plans. The IFC launched an $8 billion global COVID-19 fast-track financing support package in March, with a focus on keeping companies solvent to preserve jobs and limit economic damage. The institution quickly approved the facility, working with thousands of private sector companies, particularly in Africa, to navigate the financial challenges brought on by the pandemic. The IFC's initial phase of financing in Nigeria prioritizes the banking sector to address liquidity issues and support companies facing disruptions in supply chains. Essien Lore underscored the critical role of the manufacturing, power, and healthcare sectors in Nigeria's recovery, highlighting the need for continued operation to supply essential products and services. She also announced partnerships with Nigerian banks such as Zenith Bank and FCMB, totaling $150 million in loans to support small and medium enterprises. These partnerships aim to ensure that funds reach the real economy and targeted sectors effectively. Additionally, the IFC will work with banks to monitor the impact of their lending in critical areas such as gender entrepreneurship, energy resiliency, and agribusiness. Despite the economic downturn and ratings reviews brought on by the pandemic, Essien Lore remains optimistic about Nigeria's resilience and investment opportunities. She stressed that Nigeria has weathered previous economic cycles and continues to present attractive prospects in various sectors for investors. The IFC reaffirmed its commitment to investing in Nigeria and supporting the country's development goals, signaling confidence in Nigeria's long-term economic potential and the role of the private sector in driving growth and progress.