Nearly half our investment projects—and most of our advisory work—is in IDA countries
Jobs were scarce in Ouanaminthe, a small city in northeast Haiti.
Rolande Pericles, and thousands like her, struggled to find work and feed her family. That changed with the development of Codevi, an industrial park owned by Grupo M of the Dominican Republic. IFC’s support has allowed Grupo M to expand the park. As a result, 6,500 people now have jobs at Codevi making high-quality brand-name clothing for export. These workers now also have health and education benefits, and an active union, a rarity
“After being a sewing-machine operator, I became a supervisor, and now I’m a coordinator,” Pericles said. “The salary helps me take care of my home and my family.”
Haiti and the world’s other poorest countries struggle to eradicate preventable diseases, overcome conflict, and reduce poverty. Creating opportunity and sustainable growth in these countries—which are eligible to borrow from the International Development Association, the World Bank’s fund for the poorest—is a priority for IFC. We do it by providing integrated investment and advisory support.
Since 2005, our investments in IDA countries have grown sixfold, reaching nearly $6 billion in FY12. IDA countries account for nearly half of our investment projects, and 65 percent of our advisory program expenditures. Our record in those countries has been impressive: for every $1 in equity that IFC invested, we received a return of $2.45.
Our financial performance has allowed us to contribute a significant sum to IDA replenishments—$2.2 billion so far. That’s nearly as much as our paid-in capital of $2.4 billion.
In our work in IDA countries, we have focused on projects that allow us to create opportunity and improve lives quickly and sustainably. In FY12, for example, we provided a $5.5 million financing package to develop a 138-room Hilton hotel in Burundi—a country emerging from years of civil unrest that virtually devastated the economy.
Burundi has been working with IDA to regain stability and strengthen and modernize its economy. The country has already seen significant improvement. In the World Bank’s Doing Business 2012 report, it was ranked the seventh-most-improved economy in the world.
The new hotel will improve Burundi’s appeal to businesses and international travelers, offering international-standard accommodation and high-quality conference facilities. It is expected to create 155 permanent jobs, a third of which will be filled by women.