International Finance Corporation and Access Bank Plc have signed a framework agreement worth about $500 million aimed at expanding local currency financing for businesses across Africa, as lenders and development institutions seek to reduce exposure to foreign exchange volatility on the continent.
The agreement was signed in Kigali, Rwanda, by IFC Managing Director Makhtar Diop and Aigboje Aig-Imoukhuede, chairman of Access Holdings Plc, the parent company of Access Bank.
Under the arrangement, financing will be deployed across several African markets to support micro, small and medium-sized enterprises, agribusiness, housing and infrastructure projects.
The partnership is expected to deepen local currency lending in countries including Nigeria, Angola, Botswana, Ghana, Tanzania, Uganda, Zambia, the Democratic Republic of Congo, and regional blocs such as CEMAC and UEMOA.
The initiative comes amid growing pressure on African economies from dollar shortages, rising external debt costs and persistent exchange-rate instability, which have increased borrowing risks for companies that generate revenue primarily in local currencies.
By providing financing in domestic currencies, the framework aims to reduce currency mismatches that often expose businesses to repayment difficulties when local currencies weaken against the dollar.
Aig-Imoukhuede said the partnership would strengthen Access Bank’s capacity to provide long-term local currency funding to strategic sectors across its African operations.
“By combining Access Bank’s extensive African footprint with IFC’s development finance capabilities, the framework will support the deployment of funding at scale to MSMEs, infrastructure, agribusiness, housing and other high-impact sectors,” he said.
He added that the arrangement would also help strengthen domestic financial markets and improve economic resilience across the continent.
Diop said African businesses perform more sustainably when financing structures are aligned with the currencies in which they earn revenues.
“African businesses grow stronger when financing is aligned with the currencies in which they operate and earn,” the IFC chief said. “This partnership will help deepen local currency markets and support sustainable private sector growth across the continent.”
The agreement further expands the long-standing relationship between IFC and Access Bank, one of Africa’s largest banking groups by geographic presence.
Analysts say local currency financing has become increasingly important for African lenders and corporates as currency depreciation and tighter global financial conditions complicate access to foreign capital.
Development finance institutions including IFC have in recent years increased support for local currency instruments as part of broader efforts to strengthen financial market resilience, encourage private sector investment and support job creation across emerging economies.