Africa and other regions of the world least advanced in achieving the Sustainable Development Goals (SDGs) can count on the French bank Société Générale and the International Finance Corporation (IFC) when it comes to private capital. At least, that's the assurance given by the new agreement that the two institutions signed at the World Economic Forum (WEF) which ended on 19 January 2024 in Davos, Switzerland. It provides for boost investment in four key areas for developing economies.
Societe Generale’s ambition is to be a “robust and sustainable” bank by 2026. To achieve this, the French group is betting on financing the 17 Sustainable Development Goals (SDGs) in developing countries that are lagging far behind. To this end, it is teaming up with the International Finance Corporation (IFC), the World Bank Group’s private sector financing arm.
Together, the two institutions intend to facilitate the implementation of diversified financing solutions that are conducive to the mobilization of private investment in the fields of agriculture (MDG2), water (MDG6), energy (MDG7) and gender equality (MDG5) through the promotion of female entrepreneurship in small and medium-sized enterprises (SMEs), particularly in Africa.
Sustainable investments
Grants, loans and other support will be given as a priority to initiatives promoting innovation in these key sectors. The aim is “to bring to fruition projects whose impact on local populations and economies is crucial”, asserts IFC CEO Makhtar Diop. The World Bank Group’s subsidiary has already injected $1.3 billion of capital into Société Générale’s green investments.
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According to IFC CEO Slawonir Krupa, this is a new step in line with “our economic, social and governance (ESG) commitments, in response to the need for sustainable infrastructure in our target countries”. Algeria is one of them. Earlier in July 2022, Société Générale lent 9.4 million euros to the Algerian subsidiary Algerian subsidiary of cement manufacturer LafargeHolcim to accelerate the decarbonization of its industrial activities (ODD9). For example, the company is committed to manufacturing a low-carbon concrete called “Chamil” in this North African country.
Benoit-Ivan Wansi
