IFC backs private equity for poverty reduction in emerging markets

The International Finance Corporation (IFC) says it believes that in most developing countries, the private sector significantly contributes to efforts to end extreme poverty and boost shared prosperity.

The IFC hosted its 15th Global Private Equity Conference, in association with EMPEA (Emerging Markets Private Equity Association) which ended May 14, 2013.

The event featured Dr. Jim Yong Kim, World Bank Group President and Ruchir Shama, Head of Morgan Stanley’s Emerging Markets and Global Macro.

The conference brought together about 800 industry leaders, fund managers, institutional investors and development finance institutions executives, from about 60 countries to share knowledge, drive performance and raise standards for private equity in emerging markets.

The IFC, therefore “backs private equity funds in the emerging markets because funds have a significant impact on growth and job creation and bring not just capital, but expertise to companies.”

Since 2007, the IFC says more than half the funds supported by them have been in the world’s poorest countries and the majority of the companies they supported have been small and medium enterprises (SMEs).

The IFC indicated that its investments in funds require for the adoption of performance standards hence helping improve environmental and social standards across the industry.

By Dorcas Appiah