The International Finance Corporation (IFC) has made important strides in addressing some key development challenges through its platforms approach. In December 2022, IFC defined platforms as “thematic interventions at a regional, global, or sectoral level designed to address a specific development challenge.” A recent evaluation by the Independent Evaluation Group (IEG) found that, with some exceptions, platforms have achieved their intended objectives. Specifically, the platform approach has helped IFC respond to crises at scale, and engage in new sectors and with small and new clients, including those in International Development Association (IDA) countries and fragile and conflict-affected situations (FCS).  

Platforms achieved operational efficiencies and a focused portfolio, which helped them meet their objectives. For example, the Fast Track COVID-19 Facility  used expedited processes during the COVID-19 crisis to provide working capital to firms and financial intermediaries at a time when liquidity ran short. The Base of the Pyramid (BOP) platform and other platforms such as the Start-up Catalyst Facility were also able to reach smaller clients with smaller investments that IFC would not have financed through stand-alone projects.  

However, as IEG’s evaluation highlights, there is a critical need to enhance platform reporting and results frameworks to ensure that IFC can learn from its experience, assure transparency, and understand the impact of its platform approach. This blog explains the basis of this finding. 

The Importance of Robust Reporting and Clear Results Frameworks 

Effective reporting and oversight are not only essential for transparency and accountability, but also for decision-making based on a clear understanding of the factors that produce or hinder impact. Three key elements would help IFC monitor the implementation of platforms, identify and learn from successes and challenges, and translate the lessons into increased development effectiveness.  

1. Define clearer results frameworks at the launch of the platform. An effective results framework would be based on the platform’s intended objectives and how it will work to achieve them. Establishing measurable indicators for each of the objectives will facilitate monitoring and evaluation to assess whether the objectives have been achieved. 
2. Enhance the accuracy and timeliness of data. This will facilitate the tracking of progress toward objectives, learning from experience, and making informed decisions about the direction of the platform and any needed adjustments. This is particularly important in dynamic environments, for example in the face of crises, where quick responses to emerging challenges may be needed. 
3. Produce clearer and more comprehensive reports. This would ensure that all stakeholders, including the IFC Board of Directors, are well informed about platforms’ achievements and challenges. This transparency would promote accountability, which is crucial for long-term platform success. 

Key Findings on Reporting and Oversight 

IEG found that platform reporting has evolved over time, but there remains room for progress.  

The IFC Board of Executive Directors is interested in information on additionality, the unique contribution that IFC financing brings which commercial sources of finance do not offer, development impact (via the Anticipated Impact Measurement and Monitoring [AIMM]), environment and social and integrity risks, credit and equity risk, and risk-adjusted return on capital.  

The evaluation found that IFC management reports showed investment volumes with links to project data, platform usage and the share of IFC’s investments using its own capital across IDA countries and FCS, as well as data related to climate and gender. IFC also recently began reporting average AIMM scores at the platform level. 

Yet the evaluation also found that platforms have not consistently established indicators and measurable targets at their launch, which could serve as the basis for their reporting and oversight (see table A). IEG’s review showed gaps in establishing clear and quantifiable indicators at both the project and platform level.  

Table A: Outcome Indicators and Targets Specified in Platform Board Papers: Platform Level Versus Project Level 

Recommendations for Enhancing Reporting and Monitoring 

To facilitate oversight and learning, IEG’s evaluation recommends that IFC and its Board agree on clear results frameworks including the level, content, format, and frequency of reporting on platforms and their individual projects. 

The agreement should balance the information that the Board uses for oversight with what IFC can feasibly provide. IFC systems could be updated to fill the existing information gap at agreed-on periods. Furthermore, Board oversight and IFC’s monitoring and evaluation of platforms should be based on results frameworks that are consistent with each platform’s program logic. Such frameworks should establish specific indicators and quantifiable targets agreed to with the Board when individual platforms are approved or extended. 

Conclusion 

Enhancing reporting and results frameworks for IFC platforms is a strategic imperative that can significantly improve IFC’s learning and effectiveness and build accountability. With such reforms, IFC is well positioned to use platforms to address both global development challenges and future crises with greater accountability, adaptation, and impact.