The International Finance Corporation (IFC) has clarified that its financial support to Ghana does not contribute to the country’s public debt, stressing that its operations are focused on financing the private sector rather than lending to governments.
Speaking on Channel One TV on Monday, January 19, IFC Senior Country Manager Kyle Kelhofer explained that the institution’s financing model is fundamentally different from that of the International Monetary Fund (IMF) and the World Bank.
“Unlike the IMF and the World Bank, which are financing governments, or the Ghanaian government, which is to be repaid by the government of Ghana and the taxpayers of Ghana, at IFC, we finance the private sector, both local corporates and international investors,” he said.
Mr Kelhofer noted that this private-sector focus makes the IFC more flexible and better positioned to respond to investment opportunities, even in challenging economic environments.
“We’re much more opportunistic. And in some countries, in the midst of an IMF or World Bank programme, maybe the neighbouring environment isn’t that great. Whereas in Ghana, in the last few years, it has been a bit different,” he observed.
He attributed the growing investment interest to recent reforms and improving economic conditions, saying, “There have been some reforms, with the improvement of stability and the trends towards macro stability. There have been tremendous opportunities in the private sector.”
Mr Kelhofer further emphasised that IFC financing does not place any repayment burden on the state.
“We see investors who want to expand, who want to grow, and we finance. But we’re repaid by the investors themselves, not the government of Ghana or the taxpayers of Ghana, but the businesses here in Ghana,” he stated.
He added that this financing approach explains why governments are keen to partner with the IFC on major projects.
“This is why governments are keen on collaborating because we’re trying to help finance things, including central infrastructure like the Tema Ports, which was done through the private sector, not on the balance of government,” Mr Kelhofer said.
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