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Washington D.C., October 2, 2007
– IFC, a member of the World Bank Group, today announced that during fiscal year 2007 it delivered strong, measurable development impact and continued to grow its private sector development activities, especially in the poorest countries. The launch of IFC’s Annual Report came just days after the Board of Directors of the World Bank approved a
package of initiatives
that support a growth strategy for the Corporation based on IFC’s robust financial performance and its ability to grow its activities where they are needed most.
During this past fiscal year, which ended June 30, 2007, IFC achieved the strongest financial position in its history. As a result of this strong capital base and growth, IFC is designating some $1.75 billion from its net income to the International Development Association to promote private sector development in the poorest countries through FY2010. IBRD pledged to contribute an equal amount from its income to IDA. IFC also designated $100 million for a Global Infrastructure Project Development Fund and $100 million for micro equity funds for small business development, both for IDA countries.
“The private sector is an effective engine of long-term growth and job creation in emerging markets,” said IFC Executive Vice President and CEO Lars Thunell. “Last year, 37 percent of our investments went to IDA-eligible countries, and this number will continue to grow. We look forward to continuing our work to promote private sector development, as well as strengthening our collaboration with IDA.”
“IFC’s financial strength, dynamism, and innovative spirit give us the opportunity to contribute even more to the private sector development goals of the World Bank Group and to continue IFC’s growth strategy,” added Thunell.
This year's report represents a significant innovation: for the first time, it brings together all reporting into one unified story -- development effectiveness, sustainability, and financial results. The Annual Report now incorporates material previously available in its separately produced sustainability report and its reporting on donor partnerships. The new report reflects IFC’s full integration of environmental and social issues throughout its operations. The scope of information contained in the report is unprecedented, to be supplemented by more information on the Web, and gives the fullest picture yet of IFC’s impact in developing countries.
IFC is reporting the first results on development effectiveness from a new tracking system, which allows the Corporation to assess the effectiveness of its activities and incorporate lessons learned throughout the life cycle of a given investment or advisory project.
The new tracking system provides indicators of the number of people that IFC’s activities are reaching. In the last full calendar year, for example, 4 million people received hospital treatment, 9.5 million customers received electricity, 5 million loans helped smaller businesses, and IFC’s advisory work helped 40,000 entrepreneurs gain access to training and advice through engagements supported by IFC. The annual report includes new reach indicators for each developing region and industry that IFC serves. The report also provides an update on implementation of its environmental and social performance standards.
In addition to IFC’s contribution to IDA and the infrastructure and SME funds, the Corporation will keep increasing its investment work in frontier and IDA countries and frontier regions of middle-income countries. For example, IFC estimates that over the next four years it will make more than $16 billion in additional committed investments in IDA countries. IFC is also stepping up its support for second-tier companies and smaller enterprises in less developed regions and sectors in middle-income countries.
In FY07, IFC invested over $8 billion for its own account and mobilized nearly $4 billion more in its client countries. Expenditures for advisory services, funded by donors, IFC itself, and clients, reached nearly $197 million. The year saw IFC investment in Sub-Saharan Africa nearly double, to $1.4 billion. Investments also topped $1 billion in the Middle East and North Africa, and IFC invested $450 million in renewable energy and energy efficiency.
The annual report’s broader scope includes sections on IFC’s investment products and advisory services; new coverage of industry departments, as well as regions, showing specific examples of how IFC adds value to clients by helping them manage environmental and social performance; partnerships with governments, foundations, and civil society; and collaboration across the World Bank Group. A new section on “How We Work” provides information on IFC and Bank Group governance, the stages of IFC’s investment and advisory project cycles, and data on staff, executive compensation, and the carbon footprint of the Corporation's headquarters.
The report’s single-volume format includes IFC’s financial statements for FY07, management’s discussion and analysis, and new third-party assurance on IFC’s sustainability and development effectiveness information. The report’s Web site,
www.ifc.org/annualreport,
includes listings of FY07 investments and advisory projects; the investment portfolio as of June 30, 2007; detailed information on IFC’s Board of Governors and Board of Directors; and translations of the report and its summary as these become available.
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 $8.2 billion and mobilized an additional $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
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