The private sector arm of the World Bank Group, the International Finance Corporation (IFC), earlier this week announced an agreement for a 15% equity stake in the start-up of Pro Credit Bank, a microfinance bank in the Democratic Republic of Congo (DRC).

As well as credit facilities, the bank will also provide other financial services to micro and small businesses.

IFC's $0,45-million equity investment in Pro Credit Bank underscores the corporation's strategy of providing post-conflict support to DRC to boost private sector development, a statement released by the IFC said.

The bank will have a strong impact on the economy, helping bolster private sector wealth and job creation, accelerating the business growth of target enterprises, and boosting confidence in the banking sector.

Pro Credit Bank will also help strengthen microfinance banking in DRC by introducing commercially-oriented techniques: along with the equity investment, IFC is also providing a $0,5-million technical assistance grant to the bank for institution and capacity-building. Other foreign equity investors in Pro-Credit Bank include Stichting DOEN of the Netherlands, and Germany's Internationale Projekt Consult and Internationale Micro Investitionen - the latter in which IFC has an equity stake.

“IFC is committed to supporting and strengthening the financial sector in DRC to promote the development and growth of entrepreneurs in the micro and small business sectors,” Richard Ranken, IFC director for sub-Saharan Africa, said.

“IFC is very pleased to support Pro Credit Bank Congo, which we hope will quickly become the country's leading provider of credit and banking services to micro and small businesses.”