WORKING WITH IFC IN AFRICAThe Multilateral Days

Lisbon, Portugal

November 20-2019

Hector Gomez AngCountry ManagerAngola, Mozambique, Zambia and Botswana

▪ A member of the World Bank Group

▪ Provides investment, advice, resource mobilization

▪ Triple-A credit rating; owned by 185 countries

▪ Present in nearly 100 countries

IFC is the largest global development institution focused on

the private sector in emerging markets.

1

IFC: A MEMBER OF THE WORLD BANK GROUP

Conciliation

and arbitration

of investment

disputes

Guarantees of

foreign direct

investment’s non-

commercial risks

Interest-free loans

and grants to

governments

of poorest

countries

Loans to

middle-income

and creditworthy

low-income country

governments

Solutions in

private sector

development

IBRD

International

Bank for

Reconstruction

and

Development

IDA

International

Development

Association

IFC

International

Finance

Corporation

MIGA

Multilateral

Investment

Guarantee

Agency

ICSID

International

Centre for

Settlement of

Investment

Disputes

2

DEVELOPMENT FINANCE TODAY

Major opportunities for mobilizing private capital to:

3

End PovertyBoost Shared

Prosperity

The World Bank Group’s Twin Goals

3

4

MEETING DEVELOPMENT GOALS

The World Bank Group is uniquely positioned to mobilize domestic

resources, attract private capital, and create markets.

IDA &IBRD

IFC & MIGA

▪ Create jobs in a sustainable manner

▪ Improve access to services,

innovation and technology

▪ Demonstrate commercial viability

of new markets

▪ Strengthen financial intermediation

and expand local capital markets

▪ Generate tax revenues

▪ Mobilize third-party capital

▪ Increase competition, set standards,

and improve sector performance

▪ Establish a supportive investment

climate to mobilize private capital

for investment in development

▪ Address market failures and

reduce risks.

▪ Improve domestic resource

mobilization, from tax revenues

to capital markets

▪ Enhance management of public

expenditures

Use of private sector solutions

helps to

Use of public sector solutions

helps to

The World Bank Group’s Unique Positioning

5

Building the private sector in

developing countries:

▪ Creating jobs

▪ Increasing incomes

▪ Improving lives

OUR MISSION

Sri Lanka

6

▪ Mobilizing private capital for

development

▪ More than $285 billion invested since

our founding in 1956

IFC: SIX DECADES OF

EXPERIENCE

▪ The world’s largest development finance

institution focused on the private sector

▪ Leveraging the full range of

World Bank Group capabilities

Experience Matters.

Tunisia

6

7

CREATING MARKETS

A comprehensive approach to tap the power

of the private sector by:

▪ Establishing regulatory and policy

frameworks that improve public governance

and enable markets to thrive

▪ Promoting competition and innovation

▪ Achieving demonstration effects that

encourage replication

▪ Introducing new solutions driven by

improved technology and logistics

▪ Building capacity and skills to open new

markets

Nigeria

7

8

THE CASCADE

8

12

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If the answer is YES,

we promote private

solutions. If the answer is NO, we ask,

Is it because of

▪ Policy or regulatory

gaps or weaknesses?

If so, we provide support

for policy and regulatory

reforms.

▪ Risks? If so, we assess

whether World Bank

Group instruments can

mitigate them.

If the project requires

public funding, we pursue

that option.

A Decision-Making Sequence Prioritizing Private Sector Solutions

Is there a sustainable

private sector solution

that limits public debt

and contingent

liabilities?

THE CASCADE

THE CASCADE: ENABLING HIGH IMPACT PRIVATE SECTOR PROJECTS AS A WBGSequencing interventions along the Market Potential / Maturity Matrix

Mark

et

Matu

rity

Req

uired

Polic

yE

ng

ag

em

en

t

Market PotentialDesirable FundingArrangement

Policy,

Regulatory,

Sector Reforms

Upstream

Engagement

Targeted

Growth Policies

Public Sector Finance Blended Finance/De-Risking Private Finance

Ghana – Sankofa Gas

Zambia - Metalco

Pursuing a systematic and sequenced approach as a World Bank Group

Stimulate

Markets &

Catalyze

Private

Capital

West Africa – Caisse Régionale

de Refinancement Hypothécaire

Cote d’Ivoire – Agriculture

Kenya - KTDA

Comoros - ICT

Madagascar - Agriculture

Senegal – Eiffage Toll Road

Nigeria - Azura

Cote d’Ivoire – Azito/CIPREL

Cameroon - Power

Zambia - Power

Ethiopia - Power

Mozambique - Power

Senegal - ICT

Mozambique - Westfalia

Guinea – Sangaredi GAC

Ethiopia - Soufflet

▪ Systematically develop markets,

▪ Especially through upstream engagement and

deeper World Bank Group collaboration,

▪ With a focus on the poorest countries and

fragile and conflict situations.

IFC’S STRATEGY

Combined with IFC’s traditional approach to financing development projects through

▪ IFC 1.0: Attracting foreign private investments to developing countries

▪ IFC 2.0: Investing in local companies and banks with local private investors

CREATING MARKETS

▪ Crowd in much more patient private capital

than before.

▪ Expand use of private sector solutions.

▪ Leverage mobilization platforms.

IFC 3.0

MOBILIZING THE PRIVATE SECTOR

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IFC’S STRATEGY

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Maximizing Development Impact, Maintaining Financial Sustainability

IFC FOCUS

Industries that contribute to

productivity and growth

Regionswith the greatest

poverty and fragility

Themeswith the largest risks

and opportunities

IFC’S STRATEGY

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Key Focus Areas

Infrastructure

South Asia

Agribusiness MENA

Africa

CROSS CUTTING: Gender, Disruptive Technology, Developing Local Capital Markets,

Scaling up Mobilization

INDUSTRIES THEMES REGIONS

Financial Inclusion

Health and Education

Climate Finance

Fragility

Digital Economy

SUSTAINABILITY

Strong environmental, social, and governance standards are critical to IFC’s

business growth and development impact

THE POWER OF PARTNERSHIPS

13

Financial

Institution Clients

Host Country

Governments

Sovereign

Wealth Funds/

Institutional Investors

Approximately

2,000 Clients

Civil Society

IFIs/DFIsBilateral Donors/

Private Foundations

IFC’S GLOBAL

NETWORK FOR

SOLUTIONS

WHAT CLIENTS VALUE ABOUT IFC

Results of IFC Client Survey

14

Long-Term

Partner Role

Specialized Expertise

and Knowledge

Environmental,

Social, and Corporate

Governance Expertise

World Bank Group

Stamp of Approval

Providing Financing

Not Readily Available

Elsewhere

Understanding

of Client Needs

Global PresenceLoan Maturities

WHAT WE DO

Integrated Solutions, Increased Impact

▪ Loans

▪ Equity

▪ Trade and Commodity

Finance

▪ Derivatives and Structured

Finance

▪ Blended Finance

▪ Help Create New Markets

▪ Unlock Investment

Opportunities

▪ Strengthen Clients’

Performance and Impact

▪ Improve Environmental,

Social, and Corporate

Governance Standards

▪ Syndications

▪ IFC Asset Management

Company

ADVICE

Innovative solutions combining

IFC’s expertise and tools

INVESTMENT

Financial products tailored to

client needs

MOBILIZATION

Mobilizing and managing

capital for investment

$19.1 billion committed in FY19

$58.9 billion committed portfolio

$295.1 million program in FY19 $28 billion syndicated in last

five years

$10.1 billion

under management at IFC AMC

15

INVESTMENT

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LOANS▪ Project and corporate financing

▪ On-lending through intermediary institutions

EQUITY▪ Direct equity investments

▪ Private equity funds

TRADE AND

COMMODITY

FINANCE

Guarantee of trade-related payment obligations of

approved financial institutions

DERIVATIVES AND

STRUCTURED

FINANCE

Derivative products to hedge interest rate, currency, or

commodity-price exposures of IFC clients

BLENDED FINANCE Using donor funds to crowd in private financing

ADVICE

TO COMPANIES

▪ Attracting private investors and partners

▪ Entering new markets

▪ Increasing impact

▪ Improving operational performance and sustainability standards

▪ Advancing gender equality

TO FINANCIAL

INSTITUTIONS AND

FUNDS

TO

GOVERNMENTS

▪ Strengthening risk management, diversifying product offerings

▪ Promoting universal access to finance, strengthening capital markets, and establishing credit bureaus and collateral registries

▪ Developing the private equity industry in frontier markets

▪ Structuring public-private partnerships that improve people’s access to high-quality infrastructure and basic services

▪ Implementing reforms that encourage private investment, spur growth, and create jobs

17

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SYNDICATIONS▪ Capital mobilization to serve developmental needs

▪ Over 60 co-financiers: banks, funds, DFIs

IFC ASSET

MANAGEMENT

COMPANY

▪ Mobilizing and managing capital for businesses in emerging markets

▪ $10.1 BILLION in assets under management in 12 investment funds

MOBILIZATION

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SUSTAINABILITY

IFC’s commitment to environmental and social sustainability and

good corporate governance helps clients:

Critical to Client Success, Development Impact

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Improve business

performance

Increase impact

Enhance transparencyEngage with affected

communities

Protect the environment

PARTNERSHIPS + KNOW HOW + FOCUS ON DELIVERY

20

0.6 0.7 0.7 0.8 0.8 4.0 4.1

7.4 10.1 10.4 10.4

24.5

38.5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Brazil’s Project Structuring FacilityCumulative Private Sector Mobilization

$ in Billion

$12.5 Million

(2009)

$10.4 Billion

(2019)

$38.5 Billion

(2021)

IFC PERFORMANCE STANDARDS

A Global Benchmark

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2Treat workers fairly

and provide safe and

healthy working

conditions.

3Promote energy

efficiency, use

resources sustainably,

and cut greenhouse

emissions.

4Protect local

communities from

worksite accidents and

other project-related

dangers.

7Protect the rights,

dignity, and culture of

indigenous populations.

LABOR

RESOURCE

EFFICIENCY COMMUNITY

INDIGENOUS

PEOPLES

1Anticipate risks,

avoid, minimize and

compensate for any

impacts.

RISK

MANAGEMENT

5Avoid involuntary

resettlement and

minimize the impact on

those displaced.

LAND

RESETTLEMENT 6Protect biodiversity

and ecosystems.

BIODIVERSITY 8 CULTURAL

HERITAGE

Protect cultural

heritage and promote

equitable sharing of

related benefits.

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2Board roles, composition,

committee structure,

procedures, director duties,

and overall

functioning

3Effectiveness of internal

controls, risk management,

internal/external

audit, and

compliance

functions

BOARD STRUCTURE

AND FUNCTION

CONTROL

ENVIRONMENT

GOVERNANCE OF STAKEHOLDER ENGAGEMENT

1Awareness and

formalization of sound

practices

COMMITMENT

Information disclosure to

shareholders and markets;

transparency of information

and financial

standards used

DISCLOSURE AND

TRANSPARENCY 5 6Treatment of investors,

shareholders rights and

protections, annual

meeting procedures,

conflict/related-party

transaction policies

MINORITY SHAREHOLDER TREATMENT

IFC CORPORATE GOVERNANCE (CG) METHODOLOGY

35 development finance institutions now follow IFC’s approach, covering

six key areas of risk assessment:

Sharing Best Practice

4Oversight over

stakeholder mapping,

stakeholder

engagement policy

and grievance

mechanisms

23

WORKING WITH IFC IN AFRICA

HOW?. SYSTEMATIC AND SEQUENCED APPROACH TO CREATE MARKETS IN AFRICA

SCALING UP PRIVATE SECTOR SOLUTIONS AND CATALYZING PRIVATECAPITAL

Value chain

approaches and

cross sector

synergies

New

products

and

solutions

Leverage

Targeted

advisory and

upstream

engagements

Value chain approachesand

cross sector synergies

Sectorial

development

Untapped New

markets Joint

interventions

New products and solutions

Instruments

Operating

models

Structuring private sector

space

Internal

stakeholders

External

stakeholders

Leverage

Deepen World Bank Group Collaboration

for Policy Reform and Capacity Building

• Private sector minded reforms

• SOEs governance and

financial sustainability

• Effective regulatory agencies

• Better legal and regulatory

frameworks

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HOW?.

IFC’S PRESENCE IN AFRICA: OFFICES

IFC Hub Offices IFC

Country Offices

Mediterranean Sea

INDIAN

OCEAN

JohannesburgMaputo

Nairobi

Kigali

Abidjan

Dakar

Freetown

Monrovia

AddisAbaba

Bamako

Kinshasa

Dar es-Salaam

ATLANTIC

OCEAN

Lusaka

Antananarivo

Abuja

Lagos

Accra

Douala

Conakry

Kampala

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Lome

Cotonou

Luanda

Other offices to be opened

include: Burkina Faso, Chad,

Mali, Niger, Somalia, Uganda

and Zimbabwe.

WHAT?. “SCALING UP” BE EXECUTED?SYSTEMATIZING, DEEPENING, AND MULTIPLYING HIGH IMPACT PROGRAMS ACROSS

COUNTRIES AND SECTORS

Infrastructure and

Natural

Resources

gg

Telecoms,

Media,

Technology

gg

Manufacturing

Agribusiness and

Services

gg

Financial

Institutions

gg

Access to energy through

transmission and

distribution; direct financing

and guarantees leveraging

on policy reforms

IncreaseAccess

Power and transport Funds and venture capital to

infrastructure in most facilitate digital economy in

challengingenvironments FCS and Low Income IDA;

Accelerators, fintech, and

Competitive “packaged” inclusive technologies to

solutions to increase capacity provide a affordable access to

and reduce supplycosts better qualityservices

Ambitious climate change

adaptation projects,

including preparationcosts

Broadband connectivity with

early stage project

development leveraging WBG

collaboration and private

equity firms

Agriculture productivity

with acquisition of tree crops

and development of

affordable fertilizer and

chemical inputs

Manufacturing and

economic diversification with

a focus on buildingmaterials

Climate Smart

Agriculture practices,

access to energy and

finance, and productivity

of smallholder farmers

with focus onSahel

Identify and develop

health and education

projects

Skills shortages with

education for

employment initiatives

Affordable housing through a

value chain approach

Capital markets to foster

innovative financial solutions

for infrastructure and

corporate financing

Integrated

MSME

developme

nt

SME and agri-finance

through enhanced

instruments and use of

digital financial services

Regional financial

institutions across

continent through equity

co-investment and other

financing, advisory

products

Deepening Impact in

Focus Countries

Scaling up activities in

FCS andLow Income

IDA

FosteringRegionalInitiatives

1826

IFC’S PRESENCE IN SUB-SAHARAN AFRICA: LONG

TERM COMMITTMENTS

Long Term Finance Commitments (US$ m) – Own Account & Mobilizations

27

Data as of Sep 30, 2019.

1003762

11381536

1178 1147

2106 1930 18311398

2335

1566 1731

96

265

13

117

1339

4711081

1965

13781869

1656

1470

4637

2331

517

1268

775

1255

2874

1649

2228

4071

3308

3700

3054

3806

6203

4062

613

-500

500

1500

2500

3500

4500

5500

6500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020YTD

LTF Own Account Core Mobilization

IFC’S PRESENCE IN SUB-SAHARAN AFRICA :

INVESTMENT PORTFOLIO

Committed Portfolio (US$ m)

28

696 1021 12261573

2170 2035 2251 23943140

2518 2638 2525 2374 2430973 613716

1175

1260 1398

20082174

1880

19752434 2406 2892 2880

5871015

1134

1208

1214 1546

2020

2265

2238

2319

23182162

2196 2217

416

511

751

1056

11641125

1088

11701101

1120

11141043

744 833

26723160

3827

5012

58086104

7367

80038359

7392

85058137 8205 8363

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Financial Institutions Infrastructure and Natural Resources Manufacturing, Agribusiness and Services Distruptive Technology and Funds

Data as of Sep 30, 2019.

IFC’S PRESENCE IN SUB-SAHARAN AFRICA: ADVISORY

SERVICES

29

Total Funds

Managed by

IFC:

US$454.6m

Data as of Sep 30,

2019.

Development Economics

0%

Economics & Private Sector Development

1%

Environment, Social and

Governance3%

Equitable Growth,

Finance and Institutions

41%

Financial Institutions

Group20%

Health, Nutrition and Population

5%

Infrastructure and Natural Resources

9%

Manufacturing, Agribusiness

& Services11%

Telecoms, Media,

Technology, Venture

Capital & Funds

2%

Transaction Advisory

8%

FOCUS ON LUSOPHONE AFRICA: IFC’S ENGAGEMENT

Lusophone Africa: Angola, Cape Verde, Guinea Bissau, Mozambique, and Sao Tome and Principe.

30

Committed Investment Portfolio:

IFC FY18, FY19 and FY20 investments:

• In FY18, IFC mobilized US$2.7bn for the Nacala

Corridor in Mozambique.

• In FY19, IFC invested US$120m in the

Lusophone countries, with all the investments

in Angola (US$110m in FIG, and US$10m in MAS

– Tourism and Retail Properties)

• In FY20, IFC invested US$1.2m in Mozambique

(MAS- Agribusiness), and is actively working to

develop the pipeline.

Advisory engagement:

IFC has active advisory projects worth US$17.6m in

the Lusophone countries, including projects focusing

on digital financial services, doing business,

investment climate reforms, agribusiness and financial

services.

IFC also has projects worth US$4.6m in the pipeline.

CPSDs have also been done for 2 Lusophone countries:

Angola (completed), and Mozambique (on-going).

During FY18, projects worth $155,000 were approved

by CMAW to support diagnostic & scoping engagements

in Guinea-Bissau, Mozambique and Sao Tome Principe.

This included early-stage diagnostic work in Guinea-

Bissau to produce an action plan, that is now being

implementation by the WBG’s Joint Capital Market’s

(J-CAP) Program*.

Countries Sum of Committed Portfolio

Angola 130.0

Cape Verde 5.5

Mozambique 171.3

Sao Tome and Principe 1.39

Grand Total 248.4

Data as of Sep 30, 2019.

Investment pipeline data is

updated to 12th Nov, 2019.

*There were no CMAW approvals in Lusophone Africa in FY19, and the FY20 pipeline/engagement is being developed.

OBRIGADO

hgomezang@ifc.org

31

32

$19.1 billion in long-term investment:

▪ $8.9 billion for IFC’s own account

▪ $10.2 billion mobilized

$58.9 billion committed portfolio

$4.8 billion invested in IDA countries

Advice: 33% of program in IDA countries,

21% in fragile and conflict-affected areas,

33% in sub-Saharan Africa, 24% climate-

related.

FISCAL YEAR 2019

HIGHLIGHTS

Rwanda

10.0 10.6 11.111.9 11.6

8.9

5.1

7.17.7 7.4

11.7

10.2

0

5

10

15

20

25

FY14 FY15 FY16 FY17 FY18 FY19

IFC's Own Account Mobilization

FY19 LONG-TERM INVESTMENT COMMITMENTS:

$19.1 BILLION

33 33

$17.7 bn

$15.1 bn

$19.3 bn$18.8 bn

$23.3 bn

$19.1 bn

57.1%

12.0%

5.7%

4.3%

5.9%

3.2%

5.7%4.7% 1.5%

Financial Markets

Infrastructure

Agribusiness and Forestry

Health and Education

Tourism, Retail, and Property

Natural Resources

Funds

Manufacturing

Telecommunications and Information Technology

FY19 LONG-TERM INVESTMENT COMMITMENTS BY INDUSTRY

34

COMMITMENTS FOR IFC’S ACCOUNT: $8.9 BILLION

27.9%

17.7%

19.3%

8.4%

20.7%

5.8% 0.2%

Latin America and the Caribbean

East Asia and the Pacific

Sub-Saharan Africa

Europe and Central Asia

South Asia

Middle East and North Africa

Global

FY19 LONG-TERM INVESTMENT COMMITMENTS BY REGION

35

COMMITMENTS FOR IFC’S ACCOUNT: $8.9 BILLION

38%

19%

6%

5%

5%

3%

8%

8%

3% 4%

Financial Markets

Infrastructure

Agribusiness and Forestry

Health and Education

Tourism, Retail, and Property

Natural Resources

Funds

Manufacturing

Trade Finance

FY19 COMMITTED INVESTMENT PORTFOLIO BY INDUSTRY

36

TOTAL PORTFOLIO: $58.9 BILLION

Telecommunications and

Information Technology

Trade Finance

21%

16%

15%14%

18%

7%

9%

Latin America and the Caribbean

East Asia and the Pacific

Sub-Saharan Africa

Europe and Central Asia

South Asia

Middle East and North Africa

Global

FY19 COMMITTED INVESTMENT PORTFOLIO BY REGION

37

TOTAL PORTFOLIO: $58.9 BILLION

10%

19%

33%

13%

12%

6%

7%

Latin America and the Caribbean

East Asia and the Pacific

Sub-Saharan Africa

Europe and Central Asia

South Asia

Middle East and North Africa

Global

FY19 ADVISORY SERVICES PROGRAM EXPENDITURES

BY REGION

38

TOTAL EXPENDITURES: $295.1 MILLION

FY19 ADVISORY SERVICES PROGRAM EXPENDITURES

BY BUSINESS AREA

39

TOTAL EXPENDITURES: $295.1 MILLION

39%

5%

22%

15%

11% 2%Advisoy

Environment, Social, and Governance

Financial Institutions Group

Transaction Advisory

Manufacturing, Agribusiness and Services

Telecom, Media, Technology Venture Capital and Funds

Advisory via Equitable Growth, Finance

and Institutions Global Practices