The most recent cohort of evaluated IFC investment projects continues the downward trend in development outcome ratings that began in calendar year (CY)08-10.
Although 16 percent of IFC projects evaluated in CY15-17 achieved strong positive outcomes, 33 percent were rated as unsuccessful and, of that, 12 percent were highly unsuccessful compared with 5 percent in CY12-14. It is important to note that the latest cohort of projects were approved and evaluated during a period of sustained decrease in commodity prices, volatile macroeconomic conditions, and difficult private sector environments in many countries, as well as internal changes within IFC.
Development outcome performance was better in non-International Development Association (IDA) countries and for the environmental and social effects of investment projects. Ratings for project business success and economic sustainability saw a drop in CY15-17, as did private sector development, but from a higher base. Performance was weaker in IDA countries; Sub-Saharan Africa; commercial banking; oil, gas and mining sectors; and infrastructure investments.
Performance of IFC advisory services showed a more rapid decline. The share of IFC advisory services projects rated mostly successful or better dropped from 65 percent in FY12-14 to 37 percent in FY15-17. Advisory projects in IDA countries performed well below average, at 31 percent mostly successful or better.
Development outcome ratings are strongly associated with IFC’s work quality, especially its front-end work. IFC is actively addressing work quality issues to reverse the trend and improve its future performance.
More findings related to IFC Results and Performance (Chapter 2)