The International Finance Corporation (IFC) plans to ramp up its new investments in Africa to $10 billion annually in support of businesses that will help drive economic recovery and growth on the continent.

The member of the World Bank Group plans to add about $1 billion to the amount it invests every year until it hits the target, according to its Managing Director, Makhtar Diop.

Bloomberg reports that the organisation had invested and mobilised $6.4 billion in Africa in the 12 months through June last year.

While government spending has helped African nations to cope with the coronavirus pandemic, weather-related disasters and conflict, the number of people in absolute poverty remains high, the report said.

The IFC, venture capitalists and private equity firms are expanding or starting investments in Africa to create jobs and help boost household incomes, the report added.

“Investments in the private sector is an important factor to stabilise countries, revitalise the economy and contribute to reducing fragility,” Diop said in an interview.

“For all crises, you have an opportunity. This Covid-19 crisis has opened an opportunity to strengthen regional integration in Africa,” he noted.

The organisation stated that part of the funds will go to fragile and low-income nations to finance businesses in health, farming, affordable housing as well as the creative industry.

The IFC will also increase its investment in trade finance and in start-ups in sectors, including financial technology and energy, Diop mentioned.