Supporting Growth in Fragile and Conflict-Affected Situations (FCS) in Africa

The World Bank Group estimates that by 2030, half the world’s extreme poor will live in countries characterized by fragility, conflict, and violence. The majority of these people will be in Africa.

Supporting stability and growth in fragile and conflict-affected situations (FCS) is a top priority for IFC. In these settings, the private sector can help transform livelihoods by creating jobs, providing goods and services, generating tax revenues, and rebuilding infrastructure.

Additionally, IFC has pledged that by 2030, 40 percent of its annual commitments will be in International Development Association-eligible and FCS countries.

The private sector, particularly the local private sector, has a critical role to play in building livelihoods that can incentivize peace and stability in these contexts. However, because environments come with many complex and interconnected fragility drivers, investments can also unintentionally exacerbate existing conflict dynamics, if risks are not identified and managed.

IFC also focuses on supporting refugees—and surrounding host communities. Africa hosts an estimated 30 million refugees, internally displaced persons, and asylum-seekers, about one third of the world’s refugee population, according to UNHCR. IFC and its partners are delivering innovative projects to support private sector investment and unlock the economic potential of refugees and host communities in Africa.

A selection of IFC programs supporting development in FCS include:

The Africa Fragility Initiative (AFI)

In 2022, IFC launched the AFI, a five-year program dedicated to supporting responsible private sector-led growth and job creation across 32 African countries affected by fragility and conflict.

The Local Champions Initiative

The Local Champions Initiative supports locally owned businesses in the Sahel and West Africa to improve their investment readiness to attract financing from IFC and other sources of private sector capital.

Kakuma Kalobeyei Challenge Fund (KKCF) 

KKCF is IFC’s largest advisory project and first refugee-focused private sector development program in sub-Saharan Africa. The five-year $25.4 million program is attracting private businesses to Kenya’s Kakuma-Kalobeyei refugee-hosting area, while also financing refugee and host community-owned businesses in northwest Kenya’s Turkana County.