global challenges 2 and impact where challenges The global crisis changed the economic order, deepening the challenges developing countries will face in the decades ahead. Joblessness is making it harder for families to improve their living standards. Growing energy needs are exacerbating the threat of climate change. Rapid population growth is overwhelming urban infrastructures. Water scarcity and inadequate food security are endangering the lives of millions. Such strains also heighten the potential for confl ict. solutions meet Promoting sustainable development inthis era of they also will be critical forglobal prosperity. and more accessible, give communities access to advisory projects ease on services focused that are and innovation — and the ability mobilize to — resourcesand innovation conditions inareas ravaged byconfl fosterclean sustainable water, cities, and improve countries will not only havethe most— urgent needs IFC is playing aleading roleinhelping the private interconnected and multipolar world, developing developing world, multipolar interconnected and wherever they can be found. Inan increasingly unemployment and climate change, food make safer uncertainty will depend more than ever on partnerships sector address these challenges. Our investments and ict. p9 global challenges p10: results p16: strategy/scorecard p18: unemployment (gender program, extractive industries) p28: climate change (renewable energy, Lighting Africa) and impact p38: food security (food production, insurance) p46: confl ict (Haiti, Africa) p56: water & urbanization (water security, south-south investment) p66: lessons learned GLOBAL CHALLENGES AND IMPACT IFC’s global impact RESULTS FOSTERING SUSTAINABLE PRIVATE SECTOR GROWTH BY REGION IFC works with private sector clients across a swath of industries to improve www.ifc.org/results_region lives in the world’s most impoverished regions. We invested in 255 projects in 58 countries served by IDA in FY10, commitments that totaled $4.9 billion for our own account. Those countries, where the development needs are RESULTS deepest, accounted for nearly half of our infrastructure and agribusiness BY INDUSTRY investments. In all countries, IFC invested $5.3 billion in micro, small, and medium enterprises — the engine of job creation — in FY10. We invested www.ifc.org/results_industry $1.5 billion in infrastructure projects and $536 million in agribusinesses around the world. By region, IFC committed $3 billion for its own account RESULTS in Latin America and the Caribbean. We committed $3 billion in Europe BY ADVISORY and Central Asia, $2.4 billion in Sub-Saharan Africa, $1.6 billion in the Middle East and North Africa, $1.5 billion in East Asia and the Pacifi c, and $1 billion www.ifc.org/results_advisory in South Asia. fy10 commitments fy10 commitments fy10 commitments fy10 commitments by industry by product by region1 by environmental and dollar amounts in millions dollar amounts in millions dollar amounts in millions social category 1 number of Agribusiness $536 (4%) East Asia and the Pacific category commitments $1,547 (12%) ($ millions) projects Loans1 $5,721 (45%) Europe and Central Asia A 825 10 Global Financial Markets $2,970 (23%) $6,654 (53%) B 3,975 147 C 4,516 254 Global Information and Latin America and the FI 3,348 117 Communication Technologies Caribbean $3,006 (24%) $461 (4%) N2 0 0 Equity2 $2,974 (23%) Global Manufacturing and Total 12,664 528 Services $1,376 (11%) Middle East and North Africa Health and Education $432 (3%) $1,572 (12%) 1 See category descriptions on page 103. Infrastructure $1,578 (12%) 2 N refers to increased commitments on existing South Asia $1,061 (8%) Oil, Gas, Mining, and projects or swaps and right issues. Chemicals $1,053 (8%) Guarantees $3,932 (31%) Sub-Saharan Africa Private Equity and $2,428 (19%) Investment Funds $408 (3%) Risk Management Products Subnational Finance $166 (1%) $37 (0%) Global $80 (1%) 1 Includes loan-type, quasi-equity products 1 Some amounts include regional shares of 2 Includes equity-type, quasi-equity products investments that are offi cially classifi ed as global projects. development results development results by industry by region IFC 493 ($15,431) 71% IFC 493 ($15,431) 71% Global Manufacturing 96 ($2,659) 57% Sub-Saharan Africa 62 ($1,069) 66% and Services Infrastructure 61 ($1,719) 70% Europe and Central Asia 126 ($4,954) 66% Global Information and 20 ($272) 70% Middle East and 43 ($975) 70% Communication Technologies North Africa Global Financial Markets 177 ($7,202) 73% East Asia and the Pacific 85 ($2,237) 72% Private Equity and 47 ($592) 74% Latin America and 120 ($4,818) 77% Investment Funds the Caribbean Agribusiness 37 ($1,172) 78% South Asia 47 ($1,167) 79% Oil, Gas, Mining, and 38 ($1,546) 79% DOTS data as of June 30, 2010, for projects approved in calendar Chemicals years 2001–2006. Health and Education 13 ($127) 85% Note: Number inside bar represents number of rated projects, and number in parentheses represents total IFC investment (US$ millions) in those projects. DOTS data as of June 30, 2010, for projects approved in calendar years 2001–2006. Note: Number inside bar represents number of rated projects, and number in parentheses represents total IFC investment (US$ millions) in those projects. p10 IDA countries Middle-incom e countries with frontier regions other client countries other This map was produced by the Map Design Unit of the World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. committed portfolio committed portfolio fy10 largest country exposures1 by industry by region1 June 30, 2010 (Based on IFC’s Account) for IFC’s own account as of June 30, 2010 for IFC’s own account as of June 30, 2010 dollar amounts in millions dollar amounts in millions portfolio Agribusiness $2,310 (6%) country (rank) percent East Asia and the Pacific ($ millions) $5,475 (14%) India (1) 10 3,783 Global Financial Markets Europe and Central Asia $14,359 (37%) $9,691 (25%) Brazil (2) 7 2,533 Global Information and China (3) 6 2,327 Communication Technologies 2,286 $1,551 (4%) Russian Federation (4) 6 Global Manufacturing and Latin America and the Turkey (5) 5 2,032 Caribbean $9,609 (25%) Services $6,708 (17%) 1,099 Health and Education Argentina (6) 3 $1,065 (3%) Middle East and North Africa Mexico (7) 3 1,074 Infrastructure $6,334 (16%) $4,164 (11%) Colombia (8) 3 1,021 Oil, Gas, Mining, and South Asia $4,377 (11%) 1,019 Chemicals $3,677 (9%) Philippines (9) 3 Private Equity and Sub-Saharan Africa Ukraine (10) 2 880 Investment Funds $2,113 (5%) $5,156 (13%) Subnational Finance $748 (2%) Global $391 (1%) 1 Excludes individual country shares of regional and global projects. 1 Some amounts include regional shares of investments that are offi cially classifi ed as global projects. weighted overall fy10 advisory services project fy10 advisory services project development results expenditures by business line expenditures by region dollar amounts in millions dollar amounts in millions FY08 439 71% (9,848) 87% East Asia and the Pacific $26.1 (15%) FY09 465 71% Access to Finance $49.5 (28%) (12,559) 82% Europe and Central Asia FY10 493 71% $26.2 (15%) (15,431) 82% Latin America and the 0% 20% 40% 60% 80% 100% Corporate Advice $33.6 (19%) Caribbean $17.5 (10%) % Rated High Middle East and North Africa $15.2 (9%) Unweighted Weighted Environment and Social Sustainability $16.7 (9%) South Asia $16 (9%) FY08: DOTS data as of June 30, 2008, for projects approved in calendar years 1999–2004; FY09: DOTS Infrastructure $25.5 (14%) data as of June 30, 2009, for projects approved Sub-Saharan Africa in calendar years 2000–2005; FY10: DOTS data as $44.5 (25%) of June 30, 2010, for projects approved in calendar years 2001–2006. Investment Climate $53.0 (30%) Note: Number inside bar represents number of rated projects, and number in parentheses Global $32.7 (18%) represents total IFC investment (US$ millions) in those projects. p11 GLOBAL CHALLENGES AND IMPACT how IFC creates opportunity where it’s needed most IFC and our clients make a wide range of contributions in developing countries. Our clients’ success can have ripple effects across an economy, giving many people, including the poor, a chance to better their lives. IFC investee companies benefi t employees and their families, local communities, suppliers, investors, and the customers who buy what they produce. They generate signifi cant tax revenues for national and local governments — resources available for assisting the poor. They can use IFC’s support to expand or upgrade their facilities, improve environmental performance, strengthen corporate governance, and improve their management systems and adherence to industry standards. We provide advisory services to both fi rms and governments. Most of our advisory work with fi rms is provided alongside our investment services, to maximize impact. Our work with government clients ranges from supporting investment-climate reforms to helping design and implement public-private partnerships for infrastructure and other basic services. EMPLOYEES CUSTOMERS LOCAL COMMUNITIES SUPPLIERS In 2009, IFC’s investment cli- In 2009, IFC’s investment IFC’s policies, processes, and In 2009, IFC’s clients gener- ents provided 2.2 million jobs, clients: performance standards help ated millions of dollars for including more than 711,000 — Provided 10 million loans our clients enhance their local suppliers. Our investment through investments in private totaling $112 billion to micro, positive impact on local com- clients purchased $28.7 billion equity and investment funds, small, and medium enter- munities while avoiding or in manufacturing and services nearly 514,000 in manufactur- prises — of which 8.5 million mitigating negative effects.