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IFC 2009 Creating Opportunity. 2 Our Vision That people should have the opportunity to escape poverty and improve their lives We foster sustainable economic.

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Presentation on theme: "IFC 2009 Creating Opportunity. 2 Our Vision That people should have the opportunity to escape poverty and improve their lives We foster sustainable economic."— Presentation transcript:

1 IFC 2009 Creating Opportunity

2 2 Our Vision That people should have the opportunity to escape poverty and improve their lives We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments.

3 3 IFCs Structure Owned by 181 member countries IFC is the main driver of private sector development in the World Bank Group Collaborates with other members of the group, including the World Bank (IBRD and IDA) and MIGA Global: Headquartered in Washington, D.C. Local: More than 100 offices worldwide in 81 countries

4 IFCs History Launched in 1956: 12 years after the Bretton Woods Conference created the World Bank to finance post-WWII reconstruction and development by lending to governments Original mandate: supporting development by encouraging private investment (a new part of the global economic agenda) 1980s: IFC coins the term emerging markets 1990s: IFC increases in size, importance after fall of Berlin Wall Today: IFC is the worlds largest multilateral institution focused on private sector development, widely seen as an essential source of job creation, growth, and poverty reduction 4

5 5 Bringing Solutions to Clients IFC is responding to rising demand for private sector financing and expertise IFC brings solutions to clients through investments and advisory services IFC helps fill unmet needs by directing capital and knowledge to areas not yet benefiting from growth in emerging markets To be close to clients, more than half of IFCs 3,325 staff work in field offices

6 6 IFCs Global Reach 100+ country and regional advisory services offices worldwide

7 7 Strategic Priorities Strengthening the focus on frontier markets – IDA countries, poorer regions of middle-income countries and less developed industry sectors with brand potential Building long-term relationships with emerging market players Addressing climate change and promoting environmental and social sustainability Promoting private sector growth in infrastructure, health, and education Developing local financial markets

8 8 IFC Business Solutions Investment Services Loans and intermediary services Equity and quasi-equity Syndications Structured and securitized products Risk management products Trade finance Subnational finance Treasury operations

9 9 IFC Business Solutions Advisory Services Five main business lines Business enabling environment Access to finance Corporate advice Environmental and social sustainability Infrastructure

10 10 IFC Offers Clients A Unique Role Emphasis on development impact World Bank affiliation Market discipline Risk-taking and risk management Preferred creditor status Political risk cover

11 11 The Reach of IFCs Projects Last year our reach included: 5.5 million hospital patients 675,000 students 11.3 million electricity customers 18.1 million water customers 7 million microfinance loans 50 million new phone connections IFCs activities help raise living standards for people throughout the developing world

12 12 Fiscal Year 2008 Highlights Investments: 372 new projects in 85 countries Advisory services: 299 new projects in 75 countries $16.2 billion in financing: $11.4 billion for IFCs own account, $4.8 billion mobilized IDA countries accounted for 45 percent of IFC investments. Overall: $1.4 billion invested in Sub-Saharan Africa $1.4 billion invested in the Middle East and North Africa

13 13 IFCs Growing Role in IDA IFCs strength, dynamism, and growth strategy encourage World Bank Group collaboration IFC can add more to the development goals of the group, particularly in IDA countries IFC has designated $1.75 billion for IDAs current funding cycle, from net income over the next four years, equaling IBRD contribution A winning combination for the poor: IDA, IFC, and IBRD

14 14 Net Income and Net Worth Net Income ($ millions) Net Worth ($ billions)

15 15 IFC Financing * Mobilization for 2006 and 2007 includes structured finance, loan participations, and parallel loans.

16 16 Investments by Region, FY08 Sub-Saharan Africa 12% Commitments for IFCs Account: $11.4 Billion Europe and Central Asia 24% Latin America and Caribbean 26% Middle East and North Africa 13% Global <1% East Asia and Pacific 14% South Asia 11%

17 17 Investments by Industry, FY08 Global Financial Markets 40% Commitments for IFCs Account: $11.4 Billion Global Information and Communication Technologies 3% Global Manufacturing and Services 12% Infrastructure 21% Subnational Finance <1% Health and Education 3% Oil, Gas, Mining and Chemicals 10% Private Equity and Investment Funds 3% Agribusiness 7%

18 18 Advisory Services by Region, FY08 Sub-Saharan Africa 28% Total Spending: $269 Million East Asia and Pacific 13% South Asia 7% Latin America and Caribbean 8% Global 17% Europe and Central Asia 20% Middle East and North Africa 7%

19 19 Advisory Services by Business Line, FY08 Access to Finance 25% Total Spending: $269 Million Corporate Advice 27% Environment and Social Sustainability 12% Business Enabling Environment 23% Infrastructure 13%

20 20 Doing Our Part IFC contributes to the World Bank Groups six broad priorities for an inclusive and sustainable globalization The poorest countries: helping overcome poverty and spurring sustainable growth, especially in Africa Middle-income countries: building a competitive menu of development solutions The Arab world: supporting those who are advancing development and opportunity Fragility and conflict: focus on countries emerging from conflict or seeking to avoid breakdown of the state Global public goods: climate change, HIV/AIDS, malaria and others Knowledge and learning: building the World Bank Groups role as a brain trust of applied development expertise


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