IFC's sub Saharan Africa 2011 investments fall 8 pct

Nairobi (Reuters) - The World Bank's investment arm said on Tuesday its investments in sub Saharan Africa dropped 8.3 percent to $2.2 billion in its 2011 fiscal year, but it expects to step up investment in the coming year.

The International Finance Corporation (IFC) finances private-sector focused development projects in Africa ranging from infrastructure, agri-business, financial markets, health and education.

Private investment is seen as key to economic development in Africa and Jean Philippe Prosper, director for Eastern and Southern Africa, said IFC's investments in the region could reach $2.5 billion during the 2012 fiscal year ending in June 2012.

"Our intention is to continue to exceed the $2 billion mark. We might do $2.5 billion," Prosper told reporters.

IFC said its investment in micro, small and medium-sized enterprises in the region increased by 75 percent to about $700 million.

Though overall investments fell 8 percent in fiscal 2011, they were stabilising following a 30 percent jump in fiscal 2010 after the global financial crisis.

Prosper said sub Saharan Africa's contribution to total IFC profits during the past year was between $80-$100 million and the organisation would be keen to invest in high-growth areas in the financial and energy sectors.

IFC's global profits for the fiscal year 2011 are expected to top $1.0 billion.

"The financial sector is still a big area of growth. There is still room in Africa for expansion since so many people don't have access to financial services in the region," said Prosper.

"Africa needs 800,000 mega watts of electricity per year and we are very far from achieving that and this clearly provides an opportunity."

IFC also helps governments, through advisory services, design and implement reforms to improve their investment climate.