International Finance Corp.
The World Bank's private enterprise subsidiary, the International Finance Corp., has approved financing totaling approximately $54 million for more than five projects.
The IFC's fiscal year ended June 30, and it is not unusual that a large number of projects were approved, a spokesman for the bank said. Overall financing appeared to increase for the 1986 fiscal year, but exact figures will not be released until September, when the World Bank releases its annual report.
Increased financing is in line with a five-year expansion effort the IFC undertook in 1985. The plan was strengthened this spring when the board of governors approved an increase in authorized capital from $650 million to $1.3 billion.
"There has been a slight increase in funding projects in Africa mainly due to the IFC's efforts to promote the projects. All major international lending institutions are promoting financing in that area because of the difficult times," said Donald Roessner, a spokesman for the IFC.
Projects approved this month include:
Approximately $2.5 million to aid the financing of a $15.5 million agricultural program in Mozambique.
The loan was granted to a new company, Companhia Agro-Industrial Lonrho Mocambique Limitada, which for the first time is replacing state-owned farms with privately owned farms. The company also will introduce modernized farming methods and irrigation systems that are expected to increase food and cotton production. Cotton will be exported.
Additional financing for the program will come from the European Investment Bank, the Bank of Mozambique and an equity investment from the company.
A $3.23 million financing equivalent was approved to finance the expansion of Bata Shoe Company (Bangladesh) Limited (BSCB).
The loan will help BSCB finance a $13.4 million project that will increase its manufacturing capacity from 3.1 million to 8.9 million pairs of shoes, create approximately 1,000 jobs and introduce new tanning technologies to the company.