IFC 2024 Annual Report
Overview
In fiscal year 2024, the International Finance Corporation (IFC) committed a record $56 billion to private companies and financial institutions, focusing on creating jobs and raising living standards in emerging markets. The goal is to contribute to a world free of poverty on a livable planet.
Leadership Perspectives
- Message from Ajay Banga, World Bank Group President: The World Bank Group adopted a bold new vision of a world free of poverty on a livable planet.
- Letter from Makhtar Diop, IFC Managing Director: Emphasized the importance of accelerating impact and unlocking capital at scale.
Fiscal Year Highlights
- Total Commitments: IFC committed $56 billion, leveraging private sector solutions and mobilizing private capital.
- World Bank Group Commitments: The World Bank Group committed $117.5 billion, including:
- IBRD: $37.6 billion
- IDA: $31.2 billion
- IFC: $31.7 billion
- MIGA: $8.2 billion
- Recipient-Executed Disbursing Activities: $8.9 billion
Operational Enhancements
- Reforms and Improvements: The World Bank Group implemented core reforms to enhance its financial capacity, reinforce emphasis on results, and improve operational effectiveness and efficiency.
- New Initiatives: Launched the Global Challenge Programs, World Bank Group Guarantee Platform, and Knowledge Compact.
- Partnerships: Formed new partnerships with the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, and the Islamic Development Bank.
- Scorecard and Tools: Developed a new Scorecard and crisis preparedness and response tools.
Climate Action and Adaptation
- Climate Commitment: Committed to devoting 45% of annual financing to climate action by 2025, equally divided between mitigation and adaptation.
- Private Sector Financing: IFC and MIGA will focus on boosting private sector financing for climate adaptation.
Electrification and Healthcare
- Electricity Access: Partnered with the African Development Bank to provide electricity access to 300 million people in Africa.
- Healthcare Access: Aimed to provide quality, affordable healthcare to 1.5 billion people.
Financing Model
- IDA Crisis Facility: Raised funds for the IDA Crisis Facility and maintained IDA's financial capacity of $30 billion per year for fiscal 2024 and 2025.
- Capital Adequacy Framework: Proposed enhancements to expand IDA's financing by $20 billion through fiscal 2037.
- Loss and Damage Fund: Expected to be a significant resource in assisting developing nations affected by natural disasters linked to climate change.
Partnerships and Collaboration
- Multilateral Partnerships: Deepened partnerships with multilateral development banks and the private sector.
- One World Bank Group Partnership Charter: Highlighted principles defining work with partners and restated the vision of the partner they aspire to be.
- Private Sector Investment Lab: Addressed barriers preventing private sector investment in emerging markets.
Executive Directors' Observations
- Firsthand Impact: Executives observed the Bank Group's impact during visits to various client countries.
- Commitment: Extended gratitude to leadership and staff for their dedication to ending poverty on a livable planet.
Overall, IFC and the World Bank Group are committed to leveraging private sector solutions and mobilizing capital to achieve sustainable development goals and address global challenges.