IDAPRIVATESECTOR
WINDOWSUPPORTING GROWTH AND LIVELIHOODS
WHERE IT’S NEEDED MOSTIDA PSW FUNDS HAVE BACKED 238 PROJECTS IN
47 COUNTRIES WHILE $3.9 BILLION OF SUPPORTHAS ENABLED OVER $20 BILLION OF PRIVATEINVESTMENT.

The International Development
Association’s Private Sector Window(IDA PSW) is a development financetool established in 2017 to help
catalyze private sector investmentin the poorest and most fragilecountries. IDA PSW resources enablehigh-impact projects that otherwisewould not happen by helping defray
macroeconomic, political, and currency
risk and lower project financing costs.
IDA PSW is used by IFC and MIGA andtheir co-investors to enable the private
sector to create jobs, reduce emissions,and contribute to other development
outcomes.

IDA PSW,
paving the way
for sustainableprivate sector
developmentT

he private sector is essential
for creating jobs and increasing
incomes in the world’s poorest
countries. But the firms that form thebackbone of the economy lack access tothe capital they need to invest in their own
future, especially in countries affected byfragility and conflict. Weak macroeconomicand regulatory environments, infrastructure
bottlenecks, limited availability of skilledlabor, and political instability dampen
investment by the private sector.
IDA PSW enables IFC and MIGA tosupport the private sector through highimpact investment projects by blending
concessional funds with commercialfinance. IDA PSW helps mitigate risks andfill financing gaps in the market, providing
first-loss guarantees on credit and market
risk, facilitating longer-tenor loans, andproviding local currency in markets wherehedging options are limited. Every $1of IDA PSW funds mobilizes over $5 ofcommercial finance (roughly $2 from IFCand MIGA investment and $3 of third-partyinvestment).

1IDA PSW-SUPPORTED PROJECTSIMPROVE LIVES AND LIVELIHOODS

1.1M
JOBS

accounting for 14 percent of formal
job creation in the countries
where IDA PSW operates

173,000

SMALLHOLDER FARMERS BENEFITINGFROM IDA PSW SUPPORT

2$12.9B
IN CREDIT TO
MICRO, SMALL,AND
MEDIUM-SIZEDENTERPRISES
THROUGH

4M
LOANSof which 37 percent arefor enterprises ownedby womenIDA PSW-SUPPORTED PROJECTSIMPROVE LIVES AND LIVELIHOODS492,000
TONS OF CO2 EQUIVALENTREDUCTION

561MW

OF INSTALLED RENEWABLE ENERGYof which 60 percent is in countries affected by fragility and conflict

1.3M

PATIENTSBENEFITING FROMEXPANDED
HEALTHCARESERVICES

3IDA PSW-SUPPORTED PROJECTSIMPROVE LIVES AND LIVELIHOODS$2.2B

OF IMPORTS AND
EXPORTS ENABLED
IN ELIGIBLE
COUNTRIESDIGITALSERVICESTO OVER

29M
PEOPLE4IDA PSW FUNDS HAVE ENABLED 238 PROJECTSIN 47 COUNTRIESREGIONALUTILIZATIONIDA PSW has supported IFCand MIGA projects inall regions, with 77%of volume inSub-Saharan Africa.

10%South Asia

6%East Asia &the Pacific77%

Sub-Saharan Africa

2% Europe & Central Asia
3% Middle East & North Africa

5IDA PSW SUPPORTS LOCAL COMPANIESIDA PSW SUPPORTBY PRODUCT$1,634 million IFC Guarantees$991 million Currency Swaps$615 million MIGA Guarantees$399 million Loans$265 million Equity$33 million Political Risk Insurance

672 PERCENT OF IDA PSW WAS USED IN IFC LONG-TERM FINANCE
INVESTMENTS WITH LOCAL SPONSORS SINCE FY20IDA PSW SUPPORTBY SECTOR$1,126 million Trade/Supply Chain
Finance & Working Capital$863 million Microﬁnance and Small/Medium-Enterprise Finance$654 million Energy$258 million Venture Capital andOther Funds$214 million Telecommunications$186 million Agribusiness$175 million Housing$170 million Manufacturing$136 million Other Infrastructure$87 million Other Financial Sector$67 million Services (Health and Tourism)

7

PEOPLE

Boosting Accessto Healthcare inUganda

In Uganda, 45 percent of all health facilities are owned andmanaged by the private sector, employing nearly half thecountry’s healthcare workforce. The COVID-19 pandemic
put a serious financial strain on these providers that are so criticalto people’s health and well-being. Lockdown measures resulted ina slowdown of operations and numerous private health facilities
had to close clinics, reduce hours, and cut staff.
The IDA PSW local currency window enabled IFC to provide aloan in Ugandan shillings to International Medical Group, theUgandan subsidiary of African platform Ciel Healthcare (CHL).
Local currency financing was essential, since revenues to theclinics are in shillings. This alleviated the company’s cashflow
constraints, allowing it to continue providing vital services acrossits network of clinics and hospitals throughout the pandemic,
including programs offering preferential rates on vaccinations,dialysis, and other treatments to low-income patients.

Photo by Birom Seck/IFC

8

PEOPLEStrengthening
Food Security
in YemenA

ccording to the World Food Program,
half of Yemeni children under five are at
risk of malnutrition. IDA PSW is enabling
the continued provision of safe, fortified staple foodproducts to Yemen’s population even during the conflict.
IFC’s $75 million financing package for Hayel Saeed
Anam (HSA) Group—one of the country’s largest foodproducers—is providing the company with working
capital necessary to maintain operations and continue
to serve the Yemeni domestic market with essential
foodstuffs. With this support, provided in mid-2021, thecompany has been able to continue production, scale up
inventories, and safeguard 5,000 jobs. As the company
expands, IFC expects it to create 61,000 jobs.

Photo by HSA

IDA PSW’s first-loss guarantee, of up to 50 percent,covered part of the credit risk, thereby enabling IFC toinvest in Yemen for the first time in over a decade andgiving FMO, the Dutch Entrepreneurial Development
Bank, the confidence to invest alongside IFC and meetthe financing needs of the client.

9PROSPERITY

Supporting
Small Businesses
in HaitiM

icro, small, and medium-sized enterprises employ
about 80 percent of Haiti’s workforce. But thesefirms face steep challenges in accessing the financing
they need to grow their businesses. This is largely due to small
firms being unable to offer lenders collateral, while politicalinstability and frequent natural disasters also help dissuade banksfrom lending to companies they perceive as high risk.
To help address this financing gap, IDA PSW and IFC establisheda risk-sharing facility with Société Générale de Solidarité S.A.
(Sogesol), a leading local microfinance institution. Sogesol wasthen able to increase lending to Haiti’s MSMEs, including agrienterprises, which normally find it particularly hard to access
capital on account of volatile revenues. The financing package isestimated to generate an additional 856 loans, amounting to an
additional $27 million.

Photo by Sogesol

10PROSPERITY

Improving Diets
and Boosting theRural Economy inEthiopiaF

ood insecurity and malnutrition affect large
swathes of the population in Ethiopia, acountry where more than 20 million people
require food support. Those who can access foodmostly consume a poor-quality diet that lacks key
nutrients including protein.
In 2021, with support from the IDA PSW, IFC provided
a loan in Ethiopian birr to support the expansion ofEthioChicken, a poultry company that serves two million
rural chicken farmers, many of whom are women. The
investment proved a major boost to the rural economy
as the company produces and sells highly fertile anddisease resistant breeds of chickens to smallholders.

Photo by Mulugeta Wolde/IFC

As a result of lower mortality among chickens andhigher productivity, egg production is set to increase
five times and rural incomes will rise. People will benefit
from more protein-rich diets that reflect the improved
availability of meat and eggs.

11PROSPERITY

Supporting
Smallholder
Farmers inTimor LesteIn Timor Leste, subsistence farming is the main sourceof employment for 70 percent of the country’s ruralpopulation. A lack of access to capital—more than half of thepopulation does not have a bank account—limits the ability offarmers to boost their incomes. In 2020, IFC and IDA PSW backed
Kaebauk Investimentu no Finansas (KIF), Timor Leste’s largest
microfinance institution, with a combined $5 million in loans.
This investment is helping unlock funding for around 4,900
farmers and is helping transform the agriculture sector from one
dominated by subsistence into a more market-focused model. As
well as providing finance, KIF is promoting partnerships between
small landowners and larger-scale agribusinesses while working
to boost gender equality in the workplace. By making agriculture
a viable business for more people, KIF is driving the developmentof a more competitive and inclusive rural economy.

Photo by Alex Baluyut/World Bank

12

PROSPERITY

Supporting MSMEs
at the Base of thePyramid in theKyrgyz RepublicT

he Kyrgyz Republic’s private sector accounts
for as much as three quarters of the country’seconomy. But growth has remained stagnant
for almost two decades, partly on account of anunderdeveloped financial sector that fails to provide
enough finance for businesses to grow. Perceptions
in capital markets of high risk in one of the weakest
economies in the central Asia region have slowed
foreign private investment to a trickle.
To address the capital shortage, IFC and IDA PSW
backed three of the country’s financial institutions
to make more financing available to micro and small
companies and firms owned by women. The investment
is also making more housing finance available to lowincome segments of the population. Over 100,000
individuals and businesses have accessed this support
since it started in 2022, driving job creation and growthacross the country.

Photo by Djenan Bacvic/IFC

13

INFRASTRUCTURE

Delivering
Somalia’s First
Solar Power Plant

S

omalia’s energy sector is one of the mostunderdeveloped in east Africa, with less than half thepopulation having access to electricity. Amid severe
shortages of public resources to address this, private investment
offers the best chance for broadening access to electricity.
However, attracting private capital to a country characterized byunrest and conflict is difficult.

Photo by Doganmesut/AdobeStock

14MIGA and IDA PSW are backing the construction of the country’s
first hybrid solar power plant, which will bring affordable, reliable,
and clean energy to fragile and hard-to-reach areas. The support
amounts to first-loss guarantees to minimize risk in an unstablearea. The project will produce 4,000 MWh of electricity per year,
cut greenhouse gas emissions, and build clean power generation
capacity for the city of Baidoa, an important economic hub andhome to many people displaced by conflict.

INFRASTRUCTURE

Boosting Accessto Electricity inDjibouti

Support from MIGA and IDA PSW led to theconstruction and operation of a 17-turbine
wind farm in Djibouti by a public-private
consortium. The Ghoubet facility is the country’s
first utility-scale wind project, which will produce up
to 60 MW of power, or about 237,000 MWh per year.
It will make electricity available to many Djiboutians
for the first time ever, improving quality of life in acountry where as much as one-third of the one-million
population did not have access to the power grid.

Photo by MIGAAs an important improvement in infrastructure and abenchmark for future independent power producers, theproject also promises to attract more foreign investment
to the country. Furthermore, the project also marks animportant step toward the country achieving energy
independence—it traditionally imported over 80 percent
of its electricity from neighboring Ethiopia—whileending reliance on fossil fuels as it strives for 100 percent
renewable energy by 2035.

15

DIGITAL

Supporting
AfricanArtisansA

frica’s creative entrepreneurs face significant
challenges accessing global markets, with only 12
percent of small businesses directly exporting theirproducts. Côte d’Ivoire-based e-commerce platform ANKA
offers a one-stop online platform for African artists, including
those making and selling clothing, jewelry, and accessories,
helping them connect with new markets by facilitating sales,shipping, and payment processing. The platform is used by morethan 22,000 sellers, primarily in Africa and several in North
America, the Caribbean, and Europe. The sellers’ products can bepurchased on the online marketplace Afrikrea, which is poweredby ANKA.

Photo by Trevor Samson/World Bank

16

With support from the IDA private sector window, IFC has
made a $3.4 million equity investment into ANKA to help
support growth for thousands of small and women-led artisanalbusinesses, strengthening the region’s creative industries anddriving expansion in its online retail industry. The investment will
unlock funding to allow ANKA to increase the number of vendors
using it to access customers, by around 100,000 in the next
several years.

DIGITAL

Expanding Digital
Access in Sierra
Leone and Liberia

In Sierra Leone and Liberia, cell towers, which arevital to mobile phone services, are mostly
off-grid with 80 percent reliant on diesel power
to generate the power they need. This not only keeps
carbon emissions high but is also unreliable because
fuel needs to be transported across fragile and unstableregions, making supply intermittent.

Photo by Sagemcom

A $26 million, 10-year guarantee from MIGA and the IDA
PSW MIGA Guarantee Facility backing an investment insolar power generation in Sierra Leone and Liberia byEscotel Mauritius is providing a major boost to digital
infrastructure. Installing photovoltaic panels to power
existing and future cell towers in both countries will
deliver more reliable service for cell-phone users andresult in an important boost to the economy. It will
also lead to significant cuts in emissions. The guarantee
made this possible by reducing the associated risks tolevels acceptable to the private-sector backers who willoversee the program’s development.

17

PLANET

Backing a Debut
Green Bond fora Sustainable
Economy inTanzaniaTanzania requires an estimated $19.2 billion in financing
to meet its climate targets by 2030. Currently, mostof the country’s climate financing comes from donors,
although the private sector is becoming an increasingly importantsource of financing.
When Tanzanian lender CRDB Bank Plc raised the equivalent of$68 million in its first-ever sustainability bond issuance IFC, withthe backing of the IDA PSW local currency facility, subscribed toalmost a third of the issuance.
The proceeds will be used to provide access to finance for green
transactions and will be in accordance with CRDB’s Green Bond
Framework to finance or refinance eligible sub-projects thatwould contribute to sustainable and inclusive growth in Tanzania.

Photo by Nyani Quarmyne/IFC18

About IDA
The International Development Association (IDA) is thepart of the World Bank that helps the world’s poorest
countries. Established in 1960, IDA aims to reducepoverty by providing zero to low-interest loans (called“credits”) and grants for programs that boost economic
growth, reduce inequalities, and improve people’s livingconditions. For more information, visit ida.worldbank.org.

About IFC
IFC—a member of the World Bank Group—is the largest
global development institution focused on the private
sector in emerging markets. We work in more than 100countries, using our capital, expertise, and influence
to create markets and opportunities in developingcountries. In fiscal year 2023, IFC committed a record$43.7 billion to private companies and financial
institutions in developing countries, leveraging the powerof the private sector to end extreme poverty and boost
shared prosperity as economies grapple with the impactsof global compounding crises. For more information, visit
www.ifc.org.

About MIGA
The Multilateral Investment Guarantee Agency (MIGA)
is a member of the World Bank. Our mandate is
to promote cross-border investment in developing
countries by providing guarantees (political risk insuranceand credit enhancement) to investors and lenders. For
more information, visit www.miga.org.

DECEMBER 2023