About IFC
International Finance Corporation, a member of the World Bank Group, focuses on private sector development in developing countries. IFC provides investment, advisory, and asset management services to encourage private sector growth and reduce poverty. By offering financial products such as loans, equity investments, and guarantees, the IFC helps businesses and industries expand, create jobs, and improve their economic impact. The organization works with a wide range of sectors, including infrastructure, manufacturing, agribusiness, and services, aiming to promote sustainable and inclusive development worldwide.
Ukraine Framework
IFC provides investment, advice and asset management - offerings that are mutually reinforcing and can be tailored to a client’s specific needs. In the 2023 fiscal year, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to improve people’s lives as economies grapple with the impacts of global compounding crises.
As part of the broader World Bank Group’s response to Russia's invasion of Ukraine, in December 2022 IFC launched a $2 billion package to support the Ukrainian private sector. While initially focusing on short-term support like guarantees and liquidity, IFC is now shifting towards longer-term financing, including capital investment in key areas such as food production, construction materials, energy, shipping, and digital infrastructure.
The Economic Resilience Action (ERA) framework for IFC to address the private sector financing needs during Russia's invasion of Ukraine and prepare for the reconstruction phase:
Phase 1: Resilience During Russia's Invasion of Ukraine
Critical Sectors and Supplies
• Preservation of businesses via access to risk and working capital
• Trade finance for critical goods
• Food security and agribusiness
IDPs and Affected Municipalities
• Access to finance for refugees
• Municipal infrastructure and housing
Vital Economic Infrastructure
• Transport and logistics at the EU border
• Emergency energy security
• Critical telecom infrastructure
Investment Support: Focus on Short-Term Instruments and Very Selective Long-Term Financing:
• Predominantly guarantees, working capital across sectors, risk-sharing facilities with financial intermediaries
• Capex support for business relocation and critical infrastructure repairs / expansion
Advisory and Upstream Support: Emergency Response and Preparation for Reconstruction
• Agribusiness: Adjusting business models and finding alternative routes for exports, farmer recovery and financing programs
• Infrastructure Finance: PPPs and project development facilities
• Financial Sector: Access to finance for refugees, NPL resolution and upstream work on banking and corporate sector restructuring
Phase 2: Reconstruction and Recovery
Critical Sectors Revival
• Recapitalization of banks
• Agribusiness
• Tech/IT
• Distressed asset resolution
Infrastructure Rebuild
• Cities and housing
• Transport and logistics
• Energy transition and security
• Digital infrastructure
Under the proposed platform IFC will predominantly focus financing on resilience - it will also grow its upstream and advisory program to support reconstruction, in close coordination with the World Bank.
IFC, EBRD, EU, and France Help Deliver Largest FDI in Ukraine Since Invasion
The IFC, EBRD, EU, and France have enabled a landmark investment of $435 million into Ukraine's telecom sector, representing the largest foreign direct investment (FDI) since the Russian full-scale invasion. This initiative is called to support a landmark project involving two leading Ukrainian telecom companies, lifecell LLC and Datagroup-Volia, who recently merged to form a new group, Datagroup-Volia-lifecell. The investment will support the merged group in enhancing Ukraine's digital infrastructure, supporting faster and more resilient telecom services for 10 million mobile and 4 million broadband users. The investment will improve network security, expand connectivity, and encourage further private investment in Ukraine’s economic recovery.
Link to website
Ukraine | International Finance Corporation (IFC)
