In developing countries, the lack of risk capital hinders economic growth and thwarts entrepreneurship. By providing capital in emerging markets where it is scarce, private equity and venture capital can play a critical role in development, helping to build the dynamic, job-creating companies that drive prosperity, provide essential goods and services, and strengthen the middle class.
Enabling Private Equity Investment in Fragile Markets
Small and medium-sized enterprises (SMEs) are important drivers of growth in economies across SubSaharan Africa, accounting for about 90% of all businesses in these markets. IFC’s research shows that more than 17 million SMEs in developing countries have unmet financing needs. Young, growing businesses lack the track record on which banks base their lending criteria. SMEs are often too large to be served by microfinance institutions, yet too small for commercial banks. They require ‘risk capital’ – forms of finance that have a higher risk tolerance than bank loans.
The impact of IFC's investments in funds in 2019:
- 911THOUSANDJOBS SUPPORTED
- 238 THOUSANDJOBS FOR WOMEN SUPPORTED
- 315 THOUSAND NEW JOBS CREATED
- 831SMEs REACHED
A company or entrepreneur seeking to establish a new venture or expand an existing enterprise can approach IFC directly.
The investment proposal can be submitted to the IFC field office that is closest to the location of the proposed project.