IFC and Citi sign 1.6 billion rand borrowing facility to expand local currency financing in South Africa

The International Finance Corporation (IFC) and Citi signed a new 1.6 billion South African rand borrowing facility on April 14, 2026, in Washington, D.C., aimed at expanding IFC’s ability to provide local currency financing in South Africa, according to a press release by the World Bank Group. The facility adds to the World Bank Group’s suite of local currency financing instruments, strengthening its capacity to support private sector development. It has already supported IFC’s anchor investment into the Cape Water outcome-based bond issued by South Africa’s FirstRand Bank — the first outcome bond issued by a commercial bank globally.

The new facility builds on a similar one established in Kenyan shilling that IFC and Citi signed in 2024. Currency volatility remains one of the most important priorities for private sector development in emerging markets. Deep and liquid capital markets are essential to ensuring access to local currency financing for development priorities. By supporting new instruments in local capital markets, the World Bank Group contributes to the further deepening of those markets. Over the last decade, IFC has committed more than $33 billion in local currency financing across 71 local currencies.

Jorge Familiar, Vice President and World Bank Group Treasurer, underscored the strategic importance of the agreement.

“Local currency financing and capital markets development in emerging and developing markets are critical priorities for the World Bank Group,” he said. “This facility is another example of what our partnerships with the private sector can deliver — from outcome bonds to local currency solutions — in support of long-term finance for job creation.”

The facility reflects the World Bank Group’s continued focus on mobilizing private sector resources in emerging markets.

Stephanie von Friedeburg, Global Head of Citi’s Public Sector Group, highlighted the replicable nature of the model.

“Following our Kenyan shilling transaction, this first South African rand facility reflects a model that can be replicated throughout emerging markets,” she said. “It adds to the toolkit for development finance institutions and supports local currency financing where it is needed most.”

Both institutions plan to continue replicating the facility across additional countries.

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets, operating in more than 100 countries. Citi does business in more than 180 countries and jurisdictions, serving corporations, governments, investors, institutions, and individuals. Together, the two institutions are positioning this rand facility as a scalable model for emerging market local currency financing. The partnership signals a broader commitment to deepening capital markets across developing economies. Further replication across additional countries is planned by both IFC and Citi.