The World Bank Group’s International Finance Corporation (IFC), through “Inclusive Business Models Group,” has presented eight new case-studies of initiatives that operate within inclusive business principles [1, 2]. Inclusive businesses seek to be financially sustainable while contributing to poverty reduction by serving low-income communities. According to IFC, the poor people that represent “the base of the [economic] pyramid” have a collective purchasing power of USD 5 trillion, making low-income individuals a valuable market segment to the for-profit sector [1].
Some of the companies covered by the case studies such as the US-based WaterHealth International, which develops and operates water purification systems in Africa and Asia, work to bring access to scarce resources at an affordable cost, while others like DineroMail, an e-commerce payment processor owned by Poland’s PayU, seek to provide an affordable internet platform for payments and services.
The International Finance Corporation (IFC) was created to support private sector development, mobilize private capital and provide advisory and risk mitigation services. IFC’s Inclusive Business Models Group has invested USD 7 billion in approximately 300 inclusive business clients since 2005.
At fiscal year-end 2012, IFC reported 184 member countries, total assets of USD 76 billion and return on equity of approximately 5 percent.
By Anesa Kratovac, Research Associate
About The International Finance Corporation (IFC)
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. At fiscal year-end 2012, IFC reported 184 member countries, total assets of USD 76 billion and return on equity of approximately 5 percent.
Sources and Additional Resources:
About the WaterHealth International Case Study
About the DineroMail Case Study
[1] International Finance Corporation Website: Inclusive Business, http://www.ifc.org/wps/wcm/connect/AS_EXT_Content/What+We+Do/Inclusive+Business
[2] International Finance Corporation Website: New Inclusive Business Case Studies, http://www.ifc.org/wps/wcm/connect/as_ext_content/what+we+do/inclusive+business/news+and+highlights/new+inclusive+business+case+studies
MicroCapital Article, November 7, 2013, “International Finance Corporation (IFC) Makes $3m Equity Investment in Bina Usaha Keluarga (BUK) of Indonesia, Seeking to Triple Female Clients of Microfinance Institution Mitra Bisnis Keluarga Ventura (MBK),” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-makes-3m-equity-investment-in-bina-usaha-keluarga-buk-of-indonesia-seeking-to-triple-female-clients-of-microfinance-institution-mitra-bis/
MicroCapital Article, September 19, 2013, “International Finance Corporation (IFC) Lends $500k to microfinance institution Tuba Rai Metin (TRM) of Timor-Leste,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-lends-500k-to-microfinance-institution-tuba-rai-metin-trm-of-timor-leste/
MicroCapital Article, August 30, 2013, “International Finance Corporation (IFC) to Invest Up To $28m in Trustco of Namibia for Higher Education, Insurance in Africa,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-invest-28m-in-trustco-of-namibia-for-higher-education-insurance-in-africa/
MicroCapital Article, July 22, 2013, “FMO, International Finance Corporation (IFC), KfW Entwicklungsbank Invest $5.4m in AccessBank Rwanda,” https://www.microcapital.org/microcapital-brief-fmo-international-finance-corporation-ifc-kfw-entwicklungsbank-invest-5-4m-in-accessbank-rwanda/
MicroCapital Article, July 19, 2013, “International Finance Corporation (IFC), Siddhartha Bank Limited (SBL) Purchase 440k Shares of Rural Microfinance Development Center (RMDC) of Nepal Via Initial Public Offering (IPO),”https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-siddhartha-bank-limited-sbl-purchase-440k-shares-of-rural-microfinance-development-center-rmdc-of-nepal-via-initial-public-offering-ip/
MicroCapital Universe Profile: The International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29#Description
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: Vanuatu Launches Vanklia System to Automate Large, Small Payments
- MICROCAPITAL BRIEF: G20, SME Finance Forum Showcase Digital Finance Solutions for MSMEs Via Online Database, Seek Submissions
- MICROCAPITAL BRIEF: Joliba Capital Raises $58m in Equity from FMO, IFC, Proparco to Support SMEs, Mid-caps in Central, West Africa
- MICROCAPITAL BRIEF: EBRD Loaning $5m to ING Finansal Kiralama for Leasing for Energy Efficiency, Renewables in Turkiye
- MICROCAPITAL BRIEF: World Bank ARISE Program Includes $230m Loan for Farmers in Ukraine
