There are several bodies around the world that monitors and ensures global development of economies to improve the standard of living. These organizations focus on the private sector of developing and underdeveloped countries. The international finance corporation is a member of the World Bank group, and one of the major players that helps encourage economic development. Here’s everything you need to know about the international finance corporation.
An overview of the international finance corporation
The main job of the international finance corporation (IFC) is to create new markets by mobilizing investors, to share useful experience for growth. Therefore, by doing this, they can raise the standard of living and create more jobs for the poor and vulnerable. Basically, the vision of the International Finance Corporation supports the World Bank Group goal to eliminate poverty.
This organization was established in 1956, on the notion that the private sector could transform and expedite growth in developing countries. Furthermore, it has expanded to over 100 countries since then, pioneering new markets along the way.
What does the international finance corporation do?
The IFC helps to develop the private sector through the following ways:
- Investing in companies through debts and securities, loans, guarantees and equity investments
- Mobilizing capital from investors and lenders through parallel loans, loan participations, and other efficient means
- Advising businesses and governments to encourage private investment and in the long run, improve the overall investment climate.
The international finance corporation achieves these by employing different strategies. The strategies are:
- IFC 3.0 first strategy which primarily focuses on creating markets
- The second pillar which aims to mobilize more private capital for development purposes.
How do I get IFC funding?
To get the backing of the international finance corporation, you first have to be eligible. The eligibility requirements for a project are:
- It must be located in a developing country, who is a member of IFC
- The project must fall under the private sector (they do not fund government projects)
- It must be technically sound
- The project must have a good prospect of being profitable
- It must benefit the local economy
- Finally, the project must be socially, and environmentally sound. In essence, it must meet the IFC standards as well as that of the country it is located in.
However, you should know that IFC does not fund directly to SMEs or individuals. Instead, they fund financial institutions who act as intermediaries and releases funds to smaller businesses.
If you meet the above-stated eligibility requirements, you can then approach IFC directly by submitting your investment proposal. This proposal goes through a preliminary review, where they decide to vet it or not. In essence, during this stage, IFC might request a detailed feasibility study or business plan which would play a huge role in their decision making.
How do I contact the international finance corporation?
You can contact the international finance corporation through any of the following means:
Head office: 7th Floor Alliance Place, 33A Alfred Rewane Road, formerly Kingsway Road, Ikoyi, Lagos Nigeria.
Telephone: +234 1 279-9400
you can also visit their official website at www.ifc.org for more information.
Conclusion
Over the years, the international finance corporation has been responsible for numerous developments around the world. Majorly, their work has helped the private sector, therefore growing the economy of the country as a whole. You can benefit from their funds by submitting a detailed investment proposal, along with a feasibility study and business plan.