Across the world, nations have agreed over the past year to act in concert to achieve goals that once seemed beyond reach—to end poverty, to expand prosperity and peace, and to stop the rise in global warming. 

Success, however, will not come easily. It will depend on trillions of dollars a year in investments by governments and the private sector. It will require the world to mobilize those funds in an era of decelerating economic growth and rising geopolitical uncertainty.

In such times, experience matters. You need it to venture into the poorest and most strife-prone regions of the world. You need it to create and develop markets where none exist. You need it to mobilize financing from private investors. You need it to create new types of partnerships that can close investment and regulatory gaps while creating solutions to global challenges such as climate change and pandemics. You need it to create jobs and avoid the “middle-​income trap.”

At IFC, we have built this experience methodically. For six decades, we have routinely evaluated our activities to learn what works and what doesn’t. We have looked back to see ahead. We have innovated to strengthen the private sector in emerging markets. We have promoted policy to raise standards. We have demonstrated the benefits of investing in tough markets. In doing all of these things, our investments have achieved significant development impact.

In the year that ended June 30, 2016—​a period of considerable market turbulence—​we invested and mobilized more money for private sector development than ever before. Our long-term investments grew to a record of nearly $19 billion, helping create opportunity in more than 100 countries. More than a third of these investments—​nearly $8 billion in all—​was mobilized from other investors who joined us in our projects because of our 60-year track record of achieving strong development results and sound financial returns.

Our work had an impact in every region of the world. Our clients provided 2.4 million jobs, helped educate 4.6 million students, and treated nearly 32 million patients. They generated power for 48 million people, distributed water to nearly 22 million, and provided gas to more than 50 million.

Our work illustrates how very large and complex infrastructure projects can be funded without increasing public debt. Consider one example: the opening this year of the expanded Panama Canal. In 2008, IFC and several other development banks committed $2.3 billion to signal our confidence in the project—​and to support the work of the Panama Canal Authority in ensuring the project was carried out responsibly.

This year, we also strengthened our advice to clients. Our advisory portfolio included about 700 projects in 100 countries, valued at $1.3 billion. In FY16, more than 60 percent of IFC’s advice was delivered to clients in IDA countries—​including 20 percent in fragile and conflict-affected areas.

IFC Asset Management Company’s assets under management increased to $8.9 billion across 11 funds. AMC mobilized $476 million for IFC projects.

We know the road ahead will be challenging. The world’s expectations of the development community—​as reflected in the United Nations Sustainable Development Goals—​are rightly ambitious. Investors have grown increasingly risk-averse regarding emerging markets, causing capital flows to recede just when they are most needed. Conflict and violence in many parts of the world pose a significant obstacle to development.

Experience Matters to help create and develop markets in the poorest and most conflict—prone areas

Yet we are optimistic—​because IFC was invented for challenges of this kind. Sixty years ago, our founders set us on a course to “create conditions conducive to the flow of private capital” in “less developed areas” of the world—​to intervene wherever “sufficient private capital is not available on reasonable terms.” We’ve been doing so ever since—​venturing ever more deeply into the world’s toughest markets.

Drawing on the many lessons learned over six decades, IFC is uniquely positioned to lead this work.

Philippe Le Houérou
IFC Executive Vice President
and Chief Executive Officer