The US International Development Finance Corporation wants to increase its direct equity stakes in Africa, including in critical minerals, its regional director for Africa, Vibhuti Jain, told Reuters on 9 October.
The US government agency counts more than 14 billion dollars in investment commitments on the continent. More than 3 billion relates to critical minerals projects or related infrastructure, according to figures released by the DFC.
Vibhuti Jain said several equity transactions were included in the project pipeline, without naming the companies, countries, amounts or timelines concerned. Being in the pipeline is not an approval, a signature or a disbursement.
The DFC plans to continue relying more on debt, credit guarantees and political risk insurance than on equity stakes. The announced increase therefore concerns the relative weight of equity investment, without making it the main instrument.
A recent precedent involves WIOCC Group, an African digital infrastructure provider. In September, the DFC approved an equity stake of up to 155 million dollars, described as its largest equity commitment to date.
According to the agency, WIOCC operates fibre networks, submarine cables and more than 40 core and edge data centres in 30 African countries. The approval announcement specifies that some transactions may still depend on notifications to Congress and other steps before their final commitment or closing.
In minerals, the DFC cites rare earths projects, a graphite mine in Mozambique and the Lobito railway corridor linking copper and cobalt producing areas to the Atlantic. The agency has not disclosed governance rights, stake levels or financial terms of the new equity projects mentioned on 9 October.