IFC’s Definitions of Targeted Sectors

Use of proceeds of IFC’s targeted FI investments are primarily directed to micro, small and medium enterprises (MSMEs), women-owned businesses, climate-related projects and housing finance. For the purpose of IFC’s investments these sectors are defined as follows.

 

MSME

An enterprise qualifies as a micro, small or medium enterprise if it meets two out of three criteria of the IFC MSME Definition (employees, assets and sales), OR if the loan to it falls within the relevant MSME loan size proxy.

IFC MSME Definition 

MSME Loan Size Proxy 

 

 

 

 

 

INDICATOR 

EMPLOYEES

TOTAL ASSETS US$

ANNUAL SALES US$

LOAN SIZE AT ORIGINATION

Micro enterprise

< 10

<$100,000

<$100,000

<$10,000

Small enterprise

10-49

$100,000 - < $3 million

$100,000 - < $3 million

<$100,000

Medium enterprise

50-300

$3 million -$15 million

$3 million -$15 million

<$1 or $2 million[1]

 

Woman-Owned Enterprise

An enterprise qualifies as a woman-owned enterprise if it meets the following criteria:

(A) ≥ 51% owned by woman/women; OR

(B) ≥ 20% owned by woman/women; AND (i) has ≥ 1 woman as CEO/COO/President/Vice President; AND (ii) has ≥ 30% of the board of directors composed of women, where a board exists.

 

Housing Finance

Loans used for the construction of housing, the acquisition of new or existing housing, home improvements, energy and water efficient (green) housing, and the provision of rental housing.

 

Climate-Related Financing

Please refer to “IFC Definitions and Metrics for Climate-Related Activities” for IFC definitions of climate-related investments.

 

 

[1] US$2 million for more advanced countries including: Argentina, Brazil, Chile, China, Colombia, India, Korea, Mexico, Morocco, Peru, Russia, South Africa, Thailand, Tunisia, Turkey, and all EU accession countries—Poland, Hungary, Czech Republic, the Baltics and Slovenia.