Fresh Ideas About Business in Emerging Markets
IFC combines six decades of experience with current expertise to share evolving concepts of development finance, from bond markets to blended finance and beyond, in a series of thought pieces and case studies.
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Results - 25 of at least 128 items found
Nov 9, 2022
Adapting to Natural Disasters in Africa: What’s in it for the Private Sector?
A study on private sector investment opportunities that respond to increasingly frequent and severe floods and droughts in Africa.
Oct 12, 2022
Trade Finance in West Africa
This report provides new evidence on the size and nature of the gap between demand and supply of trade finance in Côte D’Ivoire, Ghana, Nigeria, and Senegal.
Report | English, Français | 81 pages | October 2022
Sep 11, 2022
A Climate Opportunity for the Private Sector
How to design voluntary carbon markets to attract corporate investors, drawing on lessons learned from IFC’s forests bond which matured in 2021, is discussed.
Article | September 2022
Jun 23, 2022
Gauging Appetite of African Institutional Investors for New Asset Classes
The market for alternative asset classes is examined in a joint study by IFC, the African Development Bank, and the Making Finance Work for Africa Partnership.
Jun 8, 2022
Emerging Market Green Bonds
The latest developments in emerging market and developing economy green bonds are outlined by IFC in a report with Amundi, a leading European asset manager.
May 11, 2022
Banks Show Strong Signs of Recovery from the Pandemic
Despite some positive economic signs as the pandemic begins to recede, financial institutions in emerging markets face multiple new risks, a new survey finds.
English | 8 pages | 2022 IFC
Feb 10, 2022
AI-Enabled Software-as-a-Service (SaaS)—The Next Frontier for Global SaaS Start-Ups from India
This report, developed by IFC and Stellaris, examines the growing potential of India’s AI-led software as a service (SaaS) start-ups and analyzes the role that the country, which is already a leader in the global software ecosystem, can play in an AI-led future. India is well-positioned to be at the forefront of the AI revolution. By 2030, AI applications and services together have the potential to create $500 billion of market value and almost 5 million jobs. The report is based on an industry-wide study and insights from the AI4Biz Challenge, organized to identify and recognize groundbreaking, early-stage Indian AI SaaS companies.
English | 80 Pages | IFC 2022
Jan 13, 2022
Banking on FinTech in Emerging Markets
Despite near-universal access to financial services in advanced economies, financial exclusion is stubbornly persistent in many emerging markets, leaving huge swaths of low-income populations unbanked or underbanked. FinTech companies, which apply innovative technologies to deliver such services in new ways, have begun to tap into the enormous unmet demand that this represents. These companies are starting to thrive in emerging markets, though regulatory issues, particularly weak consumer protection measures, remain to be resolved in many countries. If these can be overcome, and more progress toward universal access to digital infrastructure can be made, FinTechs will continue to scale and spread.
English | 8 Pages—January—Note 109 | IFC 2022
Dec 17, 2021
What Gets Measured Gets Done: Using a Corporate Scorecard to Drive Greater Investment Impact
In 2018, IFC’s shareholders authorized a capital increase of $5.5 billion, the largest increase in its history. The capital increase was based on a strategy that emphasizes creating markets and mobilizing private capital, and came with ambitious operational undertakings designed to ensure IFC’s place at the forefront of development finance, and to reinvigorate development in the world’s most challenging environments. To help implement these hefty undertakings, measure progress, and motivate staff, IFC took a fresh look at how the Corporation uses operational targets to achieve strategic goals and overhauled its corporate scorecard. Institutions seeking to implement a transformational strategy, as well as impact investors and development finance institutions balancing financial and impact objectives, can learn from how the revamped scorecard balances risk-taking with prudence, innovation with traditional business priorities, and speed with governance, to drive greater investment impact.
English | 8 Pages—December—Note 108 | IFC 2021
Nov 18, 2021
Municipal Broadband Networks—Opportunities, Business Models, Challenges, and Case Studies
The accelerated use of digital services during the COVID-19 pandemic has highlighted the importance of high-speed Internet access. Yet a large share of adults in emerging markets still live in cities where the availability of high-speed Internet is limited. There is a strong case to be made for municipal broadband networks, which are fully or partially facilitated, built, operated, or financed by local governments, often in partnership with the private sector. There are three basic models for creating and operating these networks, and every network must work in the unique context of the city it will serve. But if they are well implemented, these models can offer digital access to city residents, help close the digital divide, and create opportunities for private sector players in both advanced and emerging markets.
English | 8 Pages—November—Note 107 | IFC 2021
Oct 28, 2021
Financing Deep Tech
Deep tech companies—those built on advances in biotechnology, robotics, electronics, artificial intelligence, and other advanced technologies—aim to solve complex social and environmental challenges. Today the majority of deep tech companies are being launched in developed countries, yet the solutions they can provide are applicable globally. Many of these solutions are especially critical to emerging markets, as the intractable challenges of climate, health, and connectivity, among other issues, disproportionately affect these nations. Addressing these challenges is a strategic priority for development finance institutions and governments worldwide, so financing deep tech companies and boosting deep tech ecosystems in order to deliver new solutions globally is a pressing matter. Doing so, however, requires substantial capital and carries a higher degree of risk than ordinary venture investments. This note examines the process of financing a deep tech company, including the benefits an
English | 8 Pages—October—Special Note 1 | IFC 2021
Oct 14, 2021
Creating Housing Markets in Emerging Market Economies
At the beginning of the 20th century less than 15 percent of people across the globe lived in cities. This figure has risen to 50 percent (4.4 billion people) today and will exceed 66 percent (7.7 billion) by 2050.1 There is a significant shortfall of housing to meet the needs of people moving to cities, most of whom have limited resources but strong hopes for better educational and employment opportunities. Direct public provision of housing is not affordable for most national governments, so more than 1.6 billion people will struggle to secure housing by 2025. Addressing this under-provision of housing will require connecting capital with low-income urbanizing populations, including solutions to make the private sector more responsive to the investment opportunities that urbanization presents.
English | 8 pages — October — Note 106 | IFC 2021
Aug 2, 2021
Investing for Impact: The Global Impact Investing Market 2020
A comprehensive IFC assessment of the global impact investing market with estimates of market size, including publicly and privately managed impact assets.
Jul 2, 2021
Blended Concessional Finance—The Benefits of Transparency and Access
Blended concessional finance, the combination of commercial finance from the private sector and development finance institutions (DFIs) with concessional finance from public and other sources, is increasingly being used by DFIs to support developmentally important projects where normal DFI or commercial finance is not available because of the high risks involved.
English | 8 pages—July—Note 105 | IFC 2021
Jun 17, 2021
Enabling A Competitive Mobile Sector in Emerging Markets Through the Development of Tower Companies
Sharing mobile network infrastructure through specialized companies called towercos is a business model with the potential to accelerate access to quality mobile connectivity for individuals and businesses in emerging markets. A significant number of developing countries have yet to adopt this model, however, and many others continue to struggle with competition issues within their tower markets. This note provides the rationale and policy options for a light regulatory regime that can enable the entry and sustainable development of a dynamic market for towercos in emerging markets. The note also discusses the evolution of the towerco model into small cells and distributed antenna systems, both of which help enable high-speed mobile connectivity technologies like 4G and 5G.
English | 8 pages—June—Note 104 | IFC 2021
May 18, 2021
Private Sector Initiatives in Forced Displacement Contexts: Constraints and Opportunities for Market-based Approaches
The number of forcibly displaced persons has been rising in recent years, and many displacements have become protracted. However, public resources available to assist individuals and families have dwindled, exacerbating already strained situations. Amid this backdrop, private sector initiatives have emerged to help create jobs both for displaced people and their host communities. While market-based approaches in refugee contexts are still new, initiatives in several countries have demonstrated the valuable role that private sector firms and investors can play. This note discusses examples of these market-based initiatives, related challenges, and conflict-sensitive approaches for overcoming these challenges. The note also discusses the important role that development agencies can play in de-risking private sector development through market-creating strategies, partnerships, and blended concessional finance.
English | 8 pages—May—Note 103 | IFC 2021
Apr 28, 2021
Enabling Private Investment in 5G Connectivity in Emerging Markets—An Assessment of Challenges and Policy Options
This note proposes a high-level framework to assess challenges and policy options to enabling private sector-led investment in 5G connectivity in emerging markets. 5G is the latest mobile network technology and it has the potential to provide high-speed Internet connectivity and enable digital transformation across multiple sectors of an economy. The proposed framework leverages industry data to articulate the digital divide and benchmark the enabling environment for 5G connectivity in emerging markets. The note concludes with recommendations on policy options and business strategies, drawing from early experiences in advanced markets and major opportunities and challenges in emerging markets.
English | 8 pages — April —Note 102 | IFC 2021
Apr 15, 2021
Blue Natural Capital: Enhancing Business Outcomes and Sustainability of Coastal Tourism Markets
The COVID-19 pandemic hit the tourism industry particularly hard, affecting livelihoods and exacerbating some pressures on the natural capital resource base. Supporting the tourism sector recovery is an opportunity to Build Back Better, ensuring that business investments lead to a sustainable and resilient shared-growth pathway that is good for tourism and the natural capital on which it depends. Further sustainable management of the Blue Economy could more than double its economic contribution to global GDP. Therefore, the “new normal” must deepen the consideration of Blue Natural Capital and its dynamic relationship with economic sectors across coastal landscapes and markets. The experience of the State of Palawan in the Philippines is explored in this note. It serves as a useful model for weighing the opportunities and challenges typical of coastal tourism areas and exploring natural dependencies therein.
English | 8 pages — April —Note 101 | IFC 2021
Apr 12, 2021
Promoting Impact by Creating Markets: Management and Measurement
This 100th EM Compass note explains why it is important to “create markets” to promote development, and how development finance institutions and impact fund managers can draw on IFC’s Anticipated Impact Measurement and Monitoring system to assess the contribution of their investments to both market creation and project outcomes.
English | 8 pages—March—Note 100 | IFC 2021
Mar 19, 2021
Artificial Intelligence in Emerging Markets
The latest trends in AI and how investors, clients, and governments can harness its full potential in emerging markets while minimizing its risks is explored.
English | 148 pages | IFC 2021
Mar 8, 2021
How Firms Are Responding And Adapting During COVID-19 And Recovery
The COVID-19 crisis has disproportionately affected the most vulnerable firms and individuals in emerging markets, especially women and low-income populations. These groups faced significant challenges to growth and prosperity before the pandemic, and COVID-19 has only exacerbated their plights, resulting in even wider global inequities, including a further increase in global financial and digital divides. The private sector has already begun to respond to the crisis—in sectors such as digital infrastructure, trade, power, and tourism, and with methods that cut across sectors, such as inclusive business models, disruptive technologies, social bonds, and private equity. This proves that businesses can play a vital role in amplifying the public and humanitarian response to the crisis, while supporting recovery and driving strategic growth going forward, and setting the stage for “building back better” post crisis. This report highlights opportunities for businesses in emerging markets t
English | 136 pages | IFC 2021
Feb 28, 2021
Blended Concessional Finance and COVID-19
In the wake of the COVID-19 pandemic, governments, development institutions, and private companies are trying to find mechanisms to prevent the loss of essential economic activity under difficult and uncertain market conditions. In this context, blended concessional finance deployed by DFIs is already playing an even greater role than in the recent past, as it can help bridge critical financing gaps by placing important projects within the risk tolerance of private sector investors and DFIs, despite great market and financial uncertainty. Blended concessional finance will play a critical role to ensure that the response to the pandemic remains focused on the most difficult markets and, as efforts to rebuild are put in motion, the rebuilding is done in an inclusive and climate and gender-smart manner.
English | 8 pages—February—Note 99 | IFC 2021
Feb 3, 2021
Using Blended Concessional Finance to Invest in Challenging Markets
Why and when to use blended concessional finance to support private sector projects is outlined by IFC, in a report drawing on its two decades of experience.
English | 64 pages | IFC 2021
Jan 6, 2021
Private Credit in Emerging Markets
Private credit broadly refers to nonbank lending to firms. Since the Global Financial Crisis of 2008–2009, private credit has grown considerably. Although the phenomenon of private credit is more predominant in the United States and the United Kingdom, it is also a growing asset class in emerging markets. Private credit appeals to borrowers because of bespoke, structured solutions, longer maturities, greater flexibility, and ease of doing business. Investors also like private credit, because of its attractive risk-adjusted returns. The global economic shock resulting from the COVID-19 pandemic has seen marked changes in production and consumption patterns in the real economy, with ripple effects in credit markets. Uncertainty and increased risk aversion spiked a rush to top up liquidity—the so-called ‘dash for cash’— primarily in the bank-intermediated credit and public capital markets.
English | 8 pages—January—Note 98 | IFC 2021
Jan 4, 2021
How Artificial Intelligence Can Help Advance Post-Secondary Learning in Emerging Markets
Tertiary and vocational learning is widely recognized as critical for all countries’ economic success. While progress has been made toward achieving the 4th United Nations’ Sustainable Development Goal (SDG 4) by 2030—“Ensure Inclusive and Equitable Quality Education and Promote Lifelong Learning for All”—a 2019 UN report shows that some 750 million adults are functionally illiterate. These statistics illustrate the enormous challenge of adequately preparing the workforce for rapid technological change that will require continual reskilling. Although machines with artificial intelligence are likely to replace millions of workers across the world, AI also has great potential to enable workers to keep up with technological change and remain employable. This note attempts to illustrates how AI can support post-secondary learning across the entire tertiary and vocational education sector in emerging markets.
English | 8 pages—January—Note 97 | IFC 2021
