Washington, D.C., September 22, 2011—IFC,
a member of the World Bank Group, today launched a new report that identifies
seven inclusive business models that expand access to goods, services,
and livelihoods for the world’s poorest people while generating strong
financial returns. The report underscores IFC’s commitment to creating
opportunity at the base of the economic pyramid.
Accelerating Inclusive Business Opportunities:
Business Models that Make a Difference, was released at IFC’s 2nd
Annual Inclusive Business Leaders Forum, which took place on September
22, ahead of the Annual Meetings of the International Monetary Fund and
the World Bank Group. The forum brings together IFC clients, global experts,
and donors to exchange experiences and insight on inclusive business.
“Increasing our work at the base of
the economic pyramid is an important part of IFC’s strategy,” said IFC
Executive Vice President and CEO Lars Thunell. “We are working with our
clients to design, implement, and support inclusive business models that
help the world's poorest people."
The report’s findings are based on
an analysis of IFC’s portfolio, which found that mature investments in
companies with inclusive business models show financial returns very similar
to those of IFC’s portfolio as a whole, while having a larger impact on
development. The seven models identified in the report are:
• Micro distribution and retail,
reaching base of the pyramid end consumers who tend to make small, frequent
purchases through retailers who need small, frequent deliveries and the
ability to buy on credit.
• Experience-Based Customer Credit,
lending to customers the company knows are credit-worthy through past experience.
• Last-Mile Grid Utilities,
extending infrastructure grid coverage to more distant and often lower-income
neighborhoods.
• Smallholder Procurement, turning
geographically dispersed smallholder farmers into reliable sources of quality
supply.
• Value-for-Money Degrees, making
university education accessible to low-income students.
• Value-for-Money Housing, making
home ownership possible for low-income buyers through a combination of
high-value-for-money housing and facilitated access to mortgage financing.
• e-Transaction Platforms, enabling
low-income people to pay for goods and services electronically, at
lower cost and risk than paying in cash.
IFC is strengthening its focus on the
base of the pyramid, whether in the world’s poorest or middle-income countries.
Its strategy is to increase the number of financially sustainable, inclusive
business models operating at scale to help address the issue of access
to goods, services, and livelihoods for billions of low-income people.
In the past five years, IFC has invested
over $5 billion in more than 200 companies that focus on inclusive business
models, in nearly 80 countries. IFC’s Inclusive Business Group, launched
in 2010, is dedicated to mining IFC’s portfolio for lessons learned and
connecting people, resources, and ideas in support of inclusive business
clients.
For more information about inclusive
business at IFC, including the report and other case studies, visit www.ifc.org/inclusivebusiness.
About IFC
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org.
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