Transcript Document 7586958

IFC 2009
Creating Opportunity
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.
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IFC’s 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
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IFC’s 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 world’s largest multilateral institution focused
on private sector development, widely seen as an essential
source of job creation, growth, and poverty reduction
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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 IFC’s 3,325 staff
work in field offices
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IFC’s Global Reach
100+ country and regional advisory services offices worldwide
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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
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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
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IFC Business Solutions
Advisory Services
Five main business lines
• Business enabling environment
• Access to finance
• Corporate advice
• Environmental and social sustainability
• Infrastructure
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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
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The Reach of IFC’s Projects
IFC’s activities help raise living standards
for people throughout the developing world
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
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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 IFC’s 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
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IFC’s Growing Role in IDA
• IFC’s 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 $1.75 billion for IDA’s current funding cycle,
from net income over the next four years, equaling IBRD
contribution
• A winning combination for the poor: IDA, IFC, and IBRD
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Net Income and Net Worth
Net Income ($ millions)
$3,000
$20
Net Worth ($ billions)
$18
$2,500
$16
$14
$2,000
$12
$1,500
$10
$8
$1,000
$6
$4
$500
$2
$0
$0
FY99
FY00
FY01
FY02
FY03
14
FY04
FY05
FY06
FY07
FY08
IFC Financing
IFC's own account
Mobilization*
Loan Participations
$18
$16
$14
US$ billions
$12
$10
$8
$6
$4
$2
$0
FY 2003
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
* “Mobilization” for 2006 and 2007 includes structured finance, loan participations, and parallel loans.
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Investments by Region, FY08
Commitments for IFC’s Account: $11.4 Billion
Global <1%
Middle East and North Africa
13%
Sub-Saharan Africa 12%
East Asia and Pacific 14%
Latin America and Caribbean 26%
South Asia 11%
Europe and Central Asia 24%
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Investments by Industry, FY08
Commitments for IFC’s Account: $11.4 Billion
Private Equity and
Investment Funds 3%
Oil, Gas, Mining
and Chemicals 10%
Subnational
Finance <1%
Agribusiness 7%
Global Financial
Markets 40%
Infrastructure 21%
Health and Education 3%
Global Manufacturing and
Services 12%
Global Information and
Communication
Technologies 3%
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Advisory Services by Region, FY08
Total Spending: $269 Million
Global 17%
Middle East and
North Africa 7%
Latin America
and Caribbean 8%
Sub-Saharan
Africa 28%
Europe and
Central Asia 20%
East Asia and Pacific 13%
South Asia 7%
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Advisory Services by Business Line, FY08
Total Spending: $269 Million
Environment
and Social
Sustainability 12%
Business Enabling Environment 23%
Access to
Finance 25%
Infrastructure 13%
Corporate Advice 27%
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Doing Our Part
IFC contributes to the World Bank Group’s 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 Group’s role as a brain trust
of applied development expertise
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