IFC and Switzerland
Partners in Private Sector Development

OVERVIEW

IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working in more than 100 countries, IFC committed arecord $43.7 billion in own-account investments and mobilization from third parties to private companies and financial
institutions in developing countries in fiscal year 2023 (FY23).* IFC partners with multinationals and mid-sized firms thatare interested in investing in emerging markets. As of June 2023, IFC had a long-term committed investment portfolioof close to $1.2 billion with Swiss partners spread across several sectors and regions.

IFC’s Long-Term Investment Portfolio with Swiss Sponsors
As of FY23 (ending June 2023), IFC’s long-term investment portfolio with Swiss sponsors amounted to close to $1.2 billion. Swiss private
sector companies have benefited from co-investments with IFC, while making notable contributions to development.
IFC Long-Term Investment Portfolio as of June 2023

IFC Long-Term Investment Portfolio as of June 2023

by Industry with Swiss Sponsors ($1.2 billion)

by Region with Swiss Sponsors ($1.2 billion)

IFC Committed Exposure by Sector
as of June 2023 (Dollar Amounts in Millions)•Mobilization: IFC has a strong relationship with Swiss financial institutions(FIs) and an active engagement across multiple sectors. As of June 2023,
Swiss FIs held close to $1.3 billion in IFC Syndicated Loans.

•Global Trade Finance Program (GTFP): As of June 2023, IFC had issued
guarantees for over $2.1 billion for Swiss banks. This is a cumulative amountsince the GTFP began in 2005. The major confirming bank has been Credit
Suisse.

PARTNERSHIP WITH THE GOVERNMENT & THE DEVELOPMENT FINANCE INSTITUTIONSwitzerland is one of the largest development partners for IFC Advisory Services, mainly through Switzerland’s State
Secretariat for Economic Affairs SECO. In FY19-23, Switzerland provided cumulative funding of over $173 million forAdvisory Services and Blended Concessional Finance. Since 2014, SIFEM, the Swiss Development Finance Institution, hasbeen a signatory of IFC’s Master Cooperation Agreement, which streamlines lending procedures for joint investments toease financing to private companies in emerging markets. Since then, SIFEM has co-invested in several projects alongside
IFC, and adopted the Operating Principles for Impact Management in 2019.
*The World Bank Group fiscal year runs from July 1 to June 30 of the following calendar year.

PARTNERSHIP WITH THE GOVERNMENT & THE DEVELOPMENT FINANCE INSTITUTION

Examples of initiatives supported by Switzerland include:• Switzerland is providing $10 million to support Ukraine’s small-scale farmers,
who have been vital in feeding the population and safeguarding food security, as
part of IFC’s $2 billion Economic Resilience Action (ERA) program. This is thefirst blended finance collaboration between IFC and Switzerland, building on
the existing partnership in the area of financial inclusion and access to financefor agricultural SMEs.
• SECO is supporting IFC for the development of legal and regulatory frameworks
for secure transactions, credit information and insolvency and their associatedelectronic systems from 2022-2028. This Global Financial Infrastructure Program
builds on the results achieved during a previous partnership between IFC andSwitzerland in 2016-2021, which added 40.8 million individuals and firms tocredit bureau coverage and enabled nearly 1.4 million SMEs to access credit secured by movable property.
• The Sustainable Cities Program supports sustainable infrastructure solutions in select cities in the Middle East, Eastern
Europe, Sub Saharan Africa and Latin America. The program will help close the financing gap for urban infrastructureand help increase access to infrastructure services for citizens. As a result, select cities will strengthen their competitivenessthrough job creation and economic growth and enhanced operational efficiency, and improve the environmental sustainabilityof urban infrastructure.
• Belgrade Waste-to-Energy is a Public Private Partnership (PPP) that enabled the city of Belgrade in Serbia, to close
the largest open dumpsite in Europe, construct a sanitary landfill, eliminate groundwater pollution sources and build awaste-to-energy plant. IFC, with support from SECO and other partners, advised on the regulatory framework, designed
a bankable and viable PPP transaction structure, and assisted the city in conducting an international competitive tender,
which attracted top-tier operators in the sector.

Examples of Successful Cooperation
AKFED, Africa
In October 2022, IFC committed a $100 million loan in Diamond Trust Bank, a Tier I bank in Kenya, for on-lending tosmall and medium-sized borrowers to help maintain trade flows, employment and supplies of key goods and services.
The Aga Khan Fund for Economic Development (AKFED), an international development agency based in Switzerland,is the shareholder and main sponsor of Diamond Trust Bank. IFC’s investment will supports the Bank’s capacity tosustain operations and expedite post-COVID 19 recovery, helping promote the resilience of financial service providers.

Seedstars, Global
In June 2022, IFC committed a $4.5 million equity investment in Seedstars International Ventures II, a global seed fund
focused on the most nascent venture capital markets. It is part of Seedstars Group, headquartered in Switzerland. The
investment will help Seedstars support scalable innovative technology companies in emerging markets. The Fund,which aims to invest in 100 pre-seed and seed-stage companies over the next three years, will be supported by theBlended Finance Facility of the IDA19 IFC-MIGA Private Sector Window (IDA PSW). IFC’s investment will help reachthe most underserved start-up ecosystems in markets including Cameroon, Uzbekistan, Bangladesh and Cambodia. It
will also increase access to finance for tech startups in emerging markets and help develop local startup ecosystems,
while improving gender equality in investee companies.

Agro Companies, Africa
In June 2022, IFC committed $20 million through a risk participation agreement in a $60 million trade finance facility
arranged by BIC-BRED, a Swiss bank owned by the French cooperative bank BRED, for Agro Companies InternationalSA, a family-owned trading group based in Switzerland and the leading supplier of wheat to several countries inWest and Central Africa. The facility will help the group purchase wheat, corn and animal feed from international
suppliers and distribute these products to West and Central African buyers. IFC’s investment will help strengthen
food security in Africa, fill part of the trade finance gap and help limit disruptions in the food commodity supply chain.

Nespresso, Africa
In May 2022, IFC committed a CHF 4 million ($4.1 million) loan through the not-for-profit Nespresso Sustainability
Innovation Fund to help Nespresso finance climate-smart agriculture practices and better supply chain traceability incoffee-producing countries in Africa. Nespresso is an autonomous subsidiary of the Nestlé Group, a Swiss multinational
food and beverage company. IFC’s investment will support coffee farmers to reduce carbon emissions, promotenature based solutions, improve livelihoods of smallholders, and promote sustainable coffee production practices inAfrica. IFC will also provide training to around 3,100 African coffee farmers on sustainable crop production, improving
business skills, and supporting women farmers. The program will start in Uganda and Zimbabwe, with the opportunity
to expand to other countries in Africa.

CONTACTJan van Bilsen
Tel: +49 69 74 34 82 50
E-mail: jvanbilsen@ifc.org

September 2023

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