Guidance

The Investment Climate Facility for Africa (ICF)

Funding to help lower the cost of doing business in Africa and promote a better investment climate across the continent.

Overview

The Investment Climate Facility for Africa (ICF) works to improve the investment conditions in Africa. The ICF aims to bring about more business-friendly policies, laws and regulations across Africa, and to strengthen the institutions that administer them. ICF provides a unique forum for the private sector to work in partnership with governments and donors to improve the investment climate in Africa.

The ICF focuses on areas where practical steps can be taken to remove constraints and problems. It supports government projects such as streamlining business registration and licensing systems, reforming customs administration and taxation, and removing barriers to competition.

How ICF partners with government and business

ICF works with Africa’s business community to identify priority areas for intervention and to help secure government support for reform. ICF does not fund businesses or any projects that are to the benefit of 1 particular company or small group of companies. All projects funded by ICF must be for the benefit of the business community as a whole, broad sectors (eg the ICT sector) or parts of the business community (eg small- and medium-sized enterprises). ICF projects are implemented in partnership with African governments and regional economic communities. Any government receiving ICF support and funding must have submitted to, or be supportive of, the New Partnership for Africa’s Development (NEPAD’s) Peer Review Mechanism.

The process

ICF welcomes requests for assistance from governments and policymakers who share its vision to take practical steps to remove barriers to doing business in Africa.

To merit ICF support, a proposed project must:

  • produce a significant positive impact on the investment climate within a reasonable period
  • involve government and the local private sector
  • outline clearly defined, observable and measurable impact indicators
  • complement existing programmes and fill a gap
  • be part-funded by the respective government or organisation to ensure commitment to the implementation process

DFID contact: Geraldine Murphy