The informal sector and MSMEs are vital parts of emerging market economies, comprising over 90% of all firms and accounting, on average, for 60-70% of total employment and 50% of GDP worldwide. However, MSMEs are finding it increasingly difficult to access finance amid an uncertain global economic outlook and lenders’ heightened risk aversion. These challenges have disproportionately impacted small and informal business, women, and underserved social and economic groups. As the largest global development institution focused on the private sector in emerging markets, IFC is well-positioned to help financial service providers sustain their operations continue to support their MSME clients.
About the Base of the Pyramid Platform
Launched in 2021, IFC’s Base of the Pyramid Platform (BOP) is a $1 billion global financing facility to help financial service providers deliver funding to small businesses, informal enterprises, and low-income households—supporting economic growth, job creation, and a more resilient economy. Projects under the BOP platform are expected to help client financial institutions grow their loan portfolios from 5.5 million to 7.9 million loans to MSMEs, more than doubling their outstanding portfolios to over $13 billion.
The platform is supported by the IDA Private Sector Window (IDA-PSW) to help mitigate risks and uncertainties of projects in IDA PSW eligible countries. Resources from the IDA PSW Local Currency Facility may be made available to help provide local currency solutions in eligible countries.
How to Participate in the Base of the Pyramid Facility
IFC invites interested, eligible financial institutions to contact us to explore partnerships under the Base of the Pyramid Facility. For more information, please contact bopf@ifc.org.
