IFC Targets Poorer Countries, Doubles Microfinance Support for Entrepreneurs in Developing Countries
Source: International Finance Corporation, a member of the World Bank Group.
Original press release available here.
WASHINGTON, October 21, 2007 — IFC Executive Vice President and CEO, Lars Thunell, today affirmed that the Corporation’s growth strategy is central to the World Bank Group’s efforts to fight poverty.
IFC’s growth is a reflection of the role that the private sector plays as an effective engine for economic growth and job creation, particularly in the poorest countries.
In fiscal 2007, 37 percent of IFC’s investments were in IDA countries, and the Corporation has set a 50 percent goal for this fiscal year. IFC’s growth and financial success allowed it to contribute USD 1.75 billion to IDA over the next four years. IBRD contributed an equal amount.
“IFC’s growth allows us to be more effective where we are needed most, particularly in poorer countries and those affected by conflict. That is where we can add value and demonstrate development impact,” Thunell said at a press conference held during the World Bank Group’s Annual Meetings. “We are working hard to serve our clients and allow them to build successful businesses that create opportunities for poor people.”
Highlighting IFC’s work in providing microfinance to entrepreneurs in developing countries as a good example of our contribution to private sector development, Thunell announced that the Corporation will double its total commitments in the sector to reach USD 1.2 billion over the next three years. This will improve access to finance for entrepreneurs in developing countries, create jobs, and raise incomes. It will also make housing, health care, and education more affordable for their families. IFC’s support will allow its microfinance institution clients to provide USD 30 billion in business loans to over 25 million people, boosting lending in developing countries.
“IFC is focused on creating and supporting commercially viable microfinance institutions that can attract the private capital needed to grow and respond to demand,” said Thunell.
IFC is also working to expand access to finance for small and medium sized businesses, which are critical for creating jobs. IFC works through banks and equity funds to increase the availability of finance to those businesses.
Most of the world’s poor still live in rural, agricultural areas. In its agribusiness investments IFC focuses on supply chains to create strong links between large businesses and local farmers.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed USD 8.2 billion and mobilized an additional USD 3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org or contact Corrie Shanahan at +1 202 294 4697 or CShanahan@ifc.org.
Similar Posts:
- MICROCAPITAL BRIEF: She WINS Africa Program to Empower Women-led Startups
- MICROCAPITAL BRIEF: Energy Entrepreneurs Growth Fund (EEGF) Raises $125m to Increase Access to Energy in Sub-Saharan Africa
- MICROCAPITAL BRIEF: Akbank Selling $300m in Bonds to DFC, AIIB, IFC – Half to Support Women-owned Businesses in Turkiye
- MICROCAPITAL BRIEF: Access Bank Botswana Borrows $20m from OPEC Fund for MSMEs, 30% Earmarked for Women
- MICROFINANCE PAPER WRAP-UP: “Mind the Gap in Financial Inclusion! Microcredit Institutions Fieldwork in Peru;” by Pilar Lopez-Sancheza, Elena Urquia-Grande
