The International Finance Corporation (IFC) is intensifying its commitment to Africa’s economic transformation through strategic investments in industrial infrastructure and climate initiatives. In Nigeria, IFC has pledged up to $50 million to bolster Lagos Free Zone, aiming to enhance the country’s industrial landscape. Simultaneously, IFC is collaborating with Commercial International Bank (CIB) in Egypt to facilitate decarbonization efforts across key sectors. These projects align with IFC’s broader strategy to drive economic diversification, job creation, and sustainability.
Nigeria’s industrial landscape is set to benefit significantly from this investment in Lagos Free Zone, a private special economic zone integrated with the Lekki Deep Sea Port. Owned by Singapore-based Tolaram, the 860-hectare zone is expected to attract global and local businesses, transforming Nigeria’s manufacturing and logistics sectors.
Dahlia Khalifa, IFC’s Regional Director for Central Africa and Anglophone West Africa, highlighted that this investment underscores IFC’s commitment to fostering inclusive economic growth and sustainable development. She emphasized Lagos Free Zone’s potential to become a leading industrial hub, driving job creation and improving Nigeria’s global competitiveness.
With Nigeria’s GDP forecasted to grow by 3.7% by 2026, infrastructure investments like Lagos Free Zone are critical. The project’s first phase will focus on land development, industrial facilities, and logistics infrastructure. Upon full completion, the zone is expected to create approximately 30,000 jobs and significantly boost Nigeria’s economy.
Sustainability is a core component of IFC’s investment strategy. Approximately 15% of the funding for Lagos Free Zone is earmarked for climate-related initiatives, such as climate-resilient infrastructure and EDGE-certified buildings designed to improve energy efficiency.
Adesuwa Ladoja, CEO of Lagos Free Zone Company, expressed appreciation for IFC’s support, stating that the investment reinforces their vision of establishing Lagos Free Zone as a world-class industrial hub. He noted that the additional funding will help scale up existing infrastructure, attract more investors, and promote sustainability while fostering economic opportunities in Nigeria. Ladoja further highlighted that Lagos Free Zone, in conjunction with Lekki Deep Sea Port, enhances ease of doing business and supports Nigeria’s broader economic diversification agenda.
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Currently, Lagos Free Zone hosts global manufacturing giants such as Kellogg’s, Dano Milk, Colgate, BASF, ADM, and Tata International. This investment aligns with Nigeria’s ongoing economic reforms and IFC’s broader frameworks, including the World Bank Group’s Nigeria Country Partnership Framework (2021–2025) and the 2015 Climate Action Plan.
Beyond Nigeria, IFC is partnering with CIB to accelerate Egypt’s transition to a low-carbon economy. This initiative will support businesses in high-emission sectors, including oil and gas, transportation, and real estate, in reducing their carbon footprints and adopting greener practices.
Amr El-Ganainy, CIB’s Deputy CEO and Executive Board Member, highlighted the significance of this collaboration. He noted that the partnership builds upon CIB’s prior successes, including the issuance of Egypt’s first corporate green bond. Leveraging IFC’s expertise, the bank will develop a comprehensive decarbonization strategy targeting seven carbon-intensive industries. El-Ganainy further emphasized that this agreement will enhance businesses’ ability to navigate climate change challenges, unlock new innovation opportunities, and contribute to a more resilient and prosperous Egyptian economy.
IFC’s partnership with CIB is part of its Climate Finance Advisory Program, designed to support financial institutions in helping clients transition to sustainable business models. This initiative will enable Egypt to strengthen its climate resilience, optimize resource efficiency, and foster growth in the green economy.
Aliou Maiga, IFC’s Financial Institutions Group (FIG) Director for Africa, described the partnership as a major milestone in assisting Egypt’s private sector to lower emissions and manage climate-related risks. He highlighted that efficient resource allocation not only mitigates climate change impacts but also enhances competitiveness and sustainability across industries.
IFC has a longstanding history of supporting climate-related projects in Egypt. In 2021, the corporation played a significant role in backing Egypt’s first private-sector green bond issuance, targeting investments in energy efficiency, climate adaptation, and green building initiatives. Additionally, IFC assisted CIB in implementing a climate risk management framework in 2023.
The latest collaboration is supported by Germany’s Federal Ministry for Economic Affairs and Climate Action (BMWK) and aligns with the World Bank Group’s commitment to ensuring that all new financing operations comply with the Paris Agreement by 2025.
Since 1975, IFC has been actively investing in Egypt, mobilizing $9 billion for development projects across various sectors, including fintech, climate finance, manufacturing, infrastructure, renewable energy, and healthcare. Its advisory portfolio in Egypt currently stands at $22 million.
Through these investments, IFC is reinforcing its commitment to Africa’s economic transformation. These initiatives address critical infrastructure gaps, drive sustainability, and strengthen regional economies.
With IFC’s backing, Nigeria’s Lagos Free Zone is set to become a leading industrial hub, attracting global investments and creating thousands of jobs. Simultaneously, its collaboration with CIB will equip Egyptian businesses with the tools needed to transition to a greener economy.
As Africa continues to develop, such strategic investments will play a crucial role in shaping a competitive, resilient, and sustainable economic future. By fostering industrial growth while prioritizing climate action, IFC is paving the way for long-term economic prosperity across the continent.
