The Prague Post - World Bank's IFC ramps up investment amid global uncertainty

EUR -
AED 4.321043
AFN 82.357037
ALL 97.983745
AMD 453.438265
ANG 2.105661
AOA 1078.937584
ARS 1448.93909
AUD 1.792155
AWG 2.120812
AZN 1.998453
BAM 1.955534
BBD 2.380905
BDT 144.660305
BGN 1.955847
BHD 0.4435
BIF 3512.847087
BMD 1.176595
BND 1.501464
BOB 8.148891
BRL 6.364434
BSD 1.179204
BTN 100.545311
BWP 15.577548
BYN 3.859142
BYR 23061.258219
BZD 2.368707
CAD 1.597833
CDF 3394.475714
CHF 0.934616
CLF 0.028447
CLP 1091.633217
CNY 8.430774
CNH 8.429926
COP 4694.61328
CRC 595.3063
CUC 1.176595
CUP 31.179762
CVE 110.24999
CZK 24.632832
DJF 209.985164
DKK 7.461305
DOP 70.488905
DZD 152.737975
EGP 58.065965
ERN 17.648922
ETB 162.661597
FJD 2.632274
FKP 0.863743
GBP 0.861732
GEL 3.200839
GGP 0.863743
GHS 12.205338
GIP 0.863743
GMD 84.119205
GNF 10224.390708
GTQ 9.066766
GYD 246.71641
HKD 9.235857
HNL 30.809151
HRK 7.534085
HTG 154.835629
HUF 398.841774
IDR 19070.189803
ILS 3.928762
IMP 0.863743
INR 100.531736
IQD 1544.789677
IRR 49564.056629
ISK 142.403299
JEP 0.863743
JMD 188.390348
JOD 0.834182
JPY 170.139125
KES 152.404703
KGS 102.893055
KHR 4733.254998
KMF 491.816453
KPW 1058.966608
KRW 1607.016606
KWD 0.359203
KYD 0.982766
KZT 612.736576
LAK 25409.540501
LBP 105660.214403
LKR 353.781833
LRD 236.437809
LSL 20.652588
LTL 3.474178
LVL 0.71171
LYD 6.349947
MAD 10.580359
MDL 19.858296
MGA 5179.18481
MKD 61.52499
MMK 2469.915262
MNT 4218.42449
MOP 9.534302
MRU 46.767639
MUR 52.793642
MVR 18.115845
MWK 2044.878142
MXN 21.959283
MYR 4.980557
MZN 75.254812
NAD 20.652588
NGN 1798.460493
NIO 43.39317
NOK 11.831326
NPR 160.86868
NZD 1.938781
OMR 0.4524
PAB 1.179239
PEN 4.199828
PGK 4.868234
PHP 66.505253
PKR 334.636885
PLN 4.241919
PYG 9401.440334
QAR 4.297515
RON 5.056886
RSD 117.185235
RUB 93.302443
RWF 1693.933379
SAR 4.412487
SBD 9.809182
SCR 16.581997
SDG 706.543476
SEK 11.258271
SGD 1.499723
SHP 0.924619
SLE 26.414074
SLL 24672.609118
SOS 673.893931
SRD 43.751616
STD 24353.136971
SVC 10.318595
SYP 15297.826976
SZL 20.661572
THB 38.169884
TJS 11.432743
TMT 4.129848
TND 3.430633
TOP 2.755707
TRY 46.876598
TTD 7.989912
TWD 33.952985
TZS 3096.255142
UAH 49.23795
UGX 4230.424029
USD 1.176595
UYU 47.243568
UZS 14848.978317
VES 128.805952
VND 30840.314786
VUV 139.954899
WST 3.060948
XAF 655.85377
XAG 0.032093
XAU 0.000353
XCD 3.179806
XDR 0.815672
XOF 655.848197
XPF 119.331742
YER 284.912234
ZAR 20.629413
ZMK 10590.761695
ZMW 28.448281
ZWL 378.863048
  • CMSC

    0.0900

    22.314

    +0.4%

  • CMSD

    0.0250

    22.285

    +0.11%

  • RBGPF

    0.0000

    69.04

    0%

  • SCS

    0.0400

    10.74

    +0.37%

  • RELX

    0.0300

    53

    +0.06%

  • RIO

    -0.1400

    59.33

    -0.24%

  • GSK

    0.1300

    41.45

    +0.31%

  • NGG

    0.2700

    71.48

    +0.38%

  • BP

    0.1750

    30.4

    +0.58%

  • BTI

    0.7150

    48.215

    +1.48%

  • BCC

    0.7900

    91.02

    +0.87%

  • JRI

    0.0200

    13.13

    +0.15%

  • VOD

    0.0100

    9.85

    +0.1%

  • BCE

    -0.0600

    22.445

    -0.27%

  • RYCEF

    0.1000

    12

    +0.83%

  • AZN

    -0.1200

    73.71

    -0.16%

World Bank's IFC ramps up investment amid global uncertainty
World Bank's IFC ramps up investment amid global uncertainty / Photo: Anne LEBRETON - AFP

World Bank's IFC ramps up investment amid global uncertainty

While the world economy faces instability from US President Donald Trump's threats of a global trade war, the International Finance Corporation (IFC) is dramatically ramping up its investment activities.

Text size:

The Washington-based IFC -- the World Bank's private sector arm -- mobilizes private capital and provides financing to support businesses across emerging economies.

Though not widely known outside development circles, the organization plays a crucial role in creating jobs and supporting growth in less developed regions.

"The world economy has been going through a bit of a turbulent time, but what I must say is that even though there is turbulence... we are seeing a lot of interest in investing in emerging countries," Makhtar Diop, the IFC's managing director, told AFP.

This optimism is backed by concrete numbers. In the fiscal year ending June 30, preliminary data shows that the IFC committed over $71 billion -- nearly double its commitment from just three years ago and a significant jump from last year's record of $56 billion.

The investment spans the globe, with more than $20 billion flowing to Latin America, $17 billion to Asia, and $15.4 billion to Africa.

The dramatic increase stems from a deliberate strategic shift.

Diop, an economist and former Senegalese finance minister, explained that the IFC has focused on becoming "simpler, more agile, and delegating decision-making to our teams that are in the field."

This approach abandons the over-centralized structure that previously "was slowing down our ability to respond and seize new opportunities."

The timing is significant. As Western economies pull back from direct aid to developing countries -- constrained by mounting debts, rising defense budgets, and increasingly inward-looking politics -- the IFC has accelerated.

"It's totally understandable that they have fewer resources to make available in the form of grants to developing countries," Diop acknowledges.

However, he emphasized that World Bank funding for the world's poorest countries remains fully replenished, calling it "the most efficient and best way to support countries."

The IFC's expanding role within the World Bank Group is evident. Today, its funding nearly matches the support the bank provides directly to governments, making it an equal partner in development efforts.

- Dubai to Africa -

The organization is also attracting new types of investors.

Many co-financing partners now come from regions that traditionally haven't invested outside their home areas. The IFC's largest renewable energy investment in Africa, for example, was completed with a Dubai-based company.

These investors trust the IFC not only for its market knowledge but also for the risk-mitigation tools it offers, Diop said.

In Africa particularly, the IFC pursues a strategy of identifying and supporting "national champions" -- successful local companies that need help to become more competitive and globally integrated.

A significant portion of the IFC's mandate involves sustainability projects, an area where Diop decries debates with false choices between economic development and the environment, especially in electricity projects that form an important part of the agency's portfolio.

"It happens that today, you don't have to make that trade-off because the sustainable solutions are often the cheaper ones, and that's the beauty of what we are seeing," he said.

While fossil fuel generation remains part of the energy mix to ensure grid stability, the economics increasingly favor clean alternatives.

Behind all these investments lies an urgent demographic reality: 1.2 billion young people will reach working age in developing countries over the next decade.

For the World Bank, creating employment for this massive cohort is paramount.

"The first question of any leader you meet from the developing world is how can you help to create jobs for young people?" Diop observed.

Beyond infrastructure development that stimulates broader economic activity, Diop identifies tourism, pharmaceuticals, and agriculture as the most promising sectors for job creation.

These industries can offer the scale and growth potential needed to absorb the coming wave of young workers entering the global economy.

K.Pokorny--TPP