DFC backs digital infrastructure and critical minerals in Africa

The U.S. International Development Finance Corporation (DFC) has greenlit a fresh round of investments aimed at Africa and other developing economies, focusing on digital infrastructure, critical minerals, and trade financing.

On September 16, DFC’s Board of Directors endorsed over $8 billion in new deals, emphasizing digital connectivity, critical minerals, and bolstering local banks’ ability to fund international trade in these regions.

In Sub-Saharan Africa, DFC is set to invest equity in WIOCC Group, backing the growth of digital infrastructure across the continent, though the investment amount remains undisclosed.

WIOCC manages an open-access, carrier-neutral digital infrastructure network in 30 African nations, featuring subsea cables, terrestrial fiber, and over 40 core and edge data centers. DFC joins Vision International Investment Company and the Africa Finance Corporation (AFC) in this venture.

This move aims to broaden digital infrastructure access and aid tech firms expanding in African markets. DFC is also backing a critical minerals initiative in West Africa, with specifics withheld due to commercial confidentiality.

DFC noted that some projects require further steps, including congressional notification, before finalization. Beyond Africa, DFC approved a counter-guarantee for the International Finance Corporation (IFC)’s Global Trade Finance Program in emerging markets.

Through this partnership, DFC and IFC will jointly bear risks on trade finance guarantees for U.S. exports, aiming to enhance local banks’ capacity for cross-border financing and improve trade finance access for businesses in developing economies. DFC stated this could enable billions in international trade while strengthening local financial institutions’ capabilities.

“These projects will support billions in American exports, secure critical infrastructure and resources in Ukraine, Jordan, and across Africa, and strengthen U.S. companies competing in some of the most important markets in the world,” said Ben Black, CEO of DFC.

These approvals highlight DFC’s growing engagement in key sectors like technology, telecommunications, and critical minerals. The agency offers debt, guarantees, political risk insurance, and equity investments to projects and companies in emerging and developing markets.