Cross-cutting facilities with partners like the European Commission are focused on building synergies and creating impact across priority themes.
IFC Ukraine Economic Resilience Action Program for Ukraine
As part of the World Bank’s response to Russia’s invasion of Ukraine, IFC has launched a $2 billion program to support the Ukrainian private sector. The Economic Resilience Action (ERA) Program for Ukraine will address immediate private sector financing needs during the war and prepare for the post war reconstruction. The $2 billion response package includes finance from IFC's own account combined with a target of $1 billion in blended finance support from partners, to help de-risk the country market and sector risk in its current fragile state.
The private sector will play a critical role in the rebuilding of Ukraine. Flexible concessional funds from partners are crucial to de-risk high impact projects and mobilize private sector investment in critical sectors and prepare for the reconstruction phase. Current blended finance contributors to the ERA program include the Netherlands, Switzerland, and the United Kingdom, with more expected to join. Phase I of the ERA program will predominantly focus on resilience, supporting essential goods and services including related to food security and agribusiness; Internally Displaced Persons and affected municipalities, and vital economic infrastructure, including emergency energy security. Phase II will focus on the reconstruction and recovery stage, including recapitalization of banks, agribusiness, Tech/IT, and distressed asset resolution.
For more information on IFC’s ERA Program for Ukraine visit: https://www.ifc.org/ukraine
The European Commission:
Better Futures Program, European Fund for Sustainable Development Plus (EFSD+)
European Fund for Sustainable Development Plus (EFSD+) is part of the European Union’s investment framework. It supports public and private investment in partner countries worldwide by providing financial guarantees and technical assistance to promote inclusive economic development.
EFSD+ allocated approximately €300 million in unfunded guarantees and technical assistance to IFC’s Better Futures Program, which builds on IFC’s experience in mobilizing investment at scale for innovative solutions to climate change, fragility, conflict and crisis response, job creation and inclusive growth. This IFC-implemented guarantee facility focuses on de-risking investments that help build resilient livelihoods – especially in the context of conflict and fragility – and promote decarbonization and climate resiliency.
Better Futures Program: RE-Ukraine, Ukraine Investment Framework (UIF)
In 2024, the European Commission provided a Ukraine top-up to the Better Futures Program of approximately $386 million under the Ukraine Investment Framework, to scale up IFC's investments in Ukraine's real sector. This makes the EC IFC's largest blended finance contributor to Ukraine, at a critical time for the country.
IFC is also implementing two other facilities supported by the European Commission:
Small Loan Guarantee Program (SLGP): The €58 million SLGP uses a mechanism to pool together a portfolio of IFC risk-sharing facilities with IFC’s partner financial institutions to encourage them to expand their small and medium enterprises lending portfolio. This was the first blended finance collaboration between the European Commission, the International Development Association, and IFC.
In addition, the European Commission has approved two IFC programs that focus on agriculture and climate in the Western Balkans.
Alafaq Aljadida Blended Finance Facility
Middle East and North Africa Private Sector Development Program
IFC has embarked on a regional partnership with the Government of the Netherlands to support development across the MENA region, where the local economic problems and unrest have been exacerbated by COVID-19.
The $70 million IFC-Netherlands partnership includes a dedicated $22 million blended finance facility, Alafaq Aljadida (New Horizons), to help reduce the risk profile of projects with high development impact in the MENA region. The blended concessional finance investment component aims to catalyze private sector investments in potentially high-impact projects that are on the threshold of commercial viability, and deepen and expand IFC’s efforts in MENA into new and emerging areas – new horizons – by catalyzing innovative investments and unlocking private financing in eligible Program countries. Eligible countries of the Program are Iraq, Jordan, Tunisia, Egypt, the West Bank and Gaza, Algeria, Morocco, and Yemen.
Priority Areas
The Alafaq Aljadida is a multisector facility that can support projects across industries and themes (e.g. renewable energy and climate, water, education, healthcare, agribusiness, building materials and chemicals sectors, microfinance, SME finance, access to finance, trade finance etc.)
Contacts
Last updated: November 2024