Fiscal 2018 was a historic year for the World Bank Group. Our shareholders endorsed a $13 billion paid-in capital increase for IBRD and IFC — including $7.5 billion for IBRD and $5.5 billion for IFC. For IFC, this capital increase will more than triple the cumulative paid-in capital that we have received since inception.
In addition, our shareholders agreed to suspend IFC transfers to the International Development Association (IDA). As a result, the paid-in capital plus the saved retained earnings from the suspension of IDA transfers will total $9.2 billion in additional capital to support IFC operations between now and 2030.
This constitutes a clear vote of confidence in our strategic priorities for the years ahead. But it comes with high expectations: We must deliver on our strategy to achieve high impact, particularly in some of the world’s toughest markets. We project that by 2030, we will have to more than double our annual commitments to reach $48 billion in total. We pledged to significantly increase our investments in IDA countries and in fragile and conflict-affected areas. We also pledged to step up our climate investments and gender-related interventions.
This year, we started to roll out the new tools and instruments designed the year before. At the same time, we changed our organizational structure, and delivered record levels of investments.
ROLLING OUT NEW TOOLS AND APPROACHES
We rolled out new tools to reduce risks, select projects more strategically, and measure development results more rigorously:
"IFC delivered record levels of investment finance in FY18 — thanks to the talent and dedication of our staff."
NEW ORGANIZATIONAL STRUCTURE
To complement FY17’s organizational changes — which included the creation of the Economics & Private Sector Development and the Partnerships, Communications & Outreach teams — in FY18, we focused on Operations and rebalanced the matrix between IFC’s industry and regional teams to better leverage the full range of resources and capabilities available in IFC:
Despite all these changes, IFC delivered record levels of investment finance in FY18 — thanks to the talent and dedication of our staff. IFC provided a record $23.3 billion in financing to private companies, up from $19.3 billion in FY17. This growth reflects an unprecedented level of mobilization — at $11.7 billion in FY18 compared with $7.5 billion in FY17.
Nearly 30 percent of our commitments went to support development in the poorest countries: those eligible to borrow from IDA. Climate-related investments accounted for a record 36 percent of our financing for the year. In addition, we increased our focus on gender by helping women access financial services, by supporting female entrepreneurs as they expand their businesses, and by fostering gender parity in the corporate world. We also continued to deliver advisory solutions to clients in developing countries — especially in IDA countries and in fragile and conflict-affected areas. About 57 percent of IFC’s Advisory program was delivered to clients in IDA countries and 19 percent in fragile and conflict-affected areas. Twenty-seven percent of the program was climate-related. In addition, almost 45 percent of new advisory projects included a focus on gender impact in project design — up from a third last year.
We were also honored to receive more than 40 awards this year — a strong endorsement by third parties of our ability to deliver innovative projects and solutions.
This past year we laid the foundation for us to implement the new IFC strategy — with our capital increase, renewed support from our shareholders, a new structure, and new tools and approaches to deliver. This foundational work will position IFC to actively participate in the “billions to trillions” agenda and the reshaping of development finance.