Ghana is conspicuously missing from the scheme of activities of the International Finance Corporation (IFC), a member of the World Bank Group (notes a local news report). Since 2002, IFC, which deals mostly with the private sector, has not made any investments in equity or loan to any of the country’s private sector companies. IFC’s mission is to promote sustainable private sector investment in developing countries by participating in the operations of the private sector to ensure its growth and development through equity, structured finance, risk management, loans syndications and loans.
The last investment made in 2002 by IFC in the country was in Diamond Cement Ghana Ltd and Ghana Printing and Packaging Industries, producers of pulp and paper products. The lack of investment of IFC in the country’s private sector must be due to weakness of the sector itself as a result of the smallness of companies in terms of capitalisation, poor infrastructure, market growth and penetration.
According to IFC Report for the year 2004 firms also lack the necessary resources and capacity to sponsor projects that, in project size and capitalisation, meet IFCs norms for direct financing in Sub-Saharan Africa. Countries that have taken the best part of IFC facilities in Sub-Sahara Africa include Nigeria, South Africa, Mozambique, Cameroun and Kenya.