World Bank's investment arm to boost local-currency lending in Africa

Source: Reuters.

"What investors tell us is that when we have assets of less than a billion, it doesn't interest us," said Diop. "When you talk to BlackRock, when you talk to all these people, they tell you that we need a certain volume so that we can invest in our countries and have long-term resources," he said.

There is a widespread push to attract more private money into the developing world as rich nations slash aid spending and concessional finance is squeezed, and experts also say that local-currency lending can shield countries from currency volatility over which they have limited control.

Africa accounted for more than $15bn of IFC commitments last year, mostly in debt and trade finance. Diop said that local-currency lending already accounts for roughly 30% of the IFC's portfolio.

The IFC is also seeking partnerships with commercial banks to exchange dollar resources for local-currency lines. Diop said deeper market integration, including interoperable stock exchanges, would help mobilise savings and attract long-term investors.