IFC and the road to robust connectivity for digital economy development in emerging markets

Our dependency on digital infrastructure and increased reliance on secure online services are greater than ever. At the beginning of the pandemic, the World Bank Group’s call to action focused on increasing bandwidth, strengthening the resilience of networks, connecting vital services, and powering FinTech and digital business models.

The World Bank Group has delivered on this challenge with its private sector arm, IFC, deploying more capital over the last four years to support digital transformation than in the 20 years prior, to a record of over US$2 billion in the last fiscal year, turning IFC into one of the largest global investors supporting the development of digital economies in emerging markets.

The World Bank Group has also played a pivotal role in opening up the telecommunications sector and supporting market liberalization, including the entrance of the first private mobile operator in Ethiopia and the independent tower model in the Philippines.

Robust connectivity, however, is a means to an end. Ultimately, developing vibrant digital economies drives competition, boosts productivity, increases employment, promotes gender equality, and enhances services for the base of the pyramid. IFC reaches about 7 million M/SMEs through the digital companies and digital platforms in our venture portfolio, such as Wave Mobile Money, and has the potential to reach more through the supply and distribution chains of larger IFC clients such as Nubank and Orange Money.

The challenges ahead are many, including developing regulatory frameworks to tackle the pitfalls and opportunities of AI and accelerating the transition to a carbon-neutral world. The need for strong partnerships such as the one between the World Bank Group and ITU has never been greater.