Independent Evaluation Group2012-05-252012-05-252008978-0-8213-7417-7https://hdl.handle.net/10986/6485Since the mid-1990s, the International Finance Corporation (IFC) has designed a number of strategies for supporting micro, small, and medium-size enterprises (MSMEs). The IFC strategy in place since 2001 focuses on: (i) providing financial support to MSMEs through financial intermediaries; and (ii) providing non-financial, indirect, institution-building support to MSMEs through project-development facilities co-financed by donors. In addition, IFC's corporate strategies focus on supporting private sector development in frontier countries (characterized by high risk or low income), in response to their relatively lower private capital inflows and less developed banking systems, as compared with medium (or low) risk middle-income countries. The objective of this study, therefore, is to evaluate the confluence of these two institutional strategic priorities (support for MSMEs through financial intermediaries, and support to enterprises in frontier countries) as well as to provide recommendations on how the strategy to support MSMEs through financial intermediaries in frontier countries can be improved to enhance its development impacts. This study evaluated the outcomes of all 21 operationally mature, for-profit, micro enterprise-oriented financial intermediary (MFI) projects and all 72 operationally mature, for-profit, small and medium-size enterprise-oriented financial intermediary (SME-FI) projects supported by IFC in countries designated as frontier countries at the time of project approval.en-USCC BY 3.0 IGOACCESS TO FINANCEACQUISITION COSTSADMINISTRATIVE SUPPORTADVISORY SERVICEADVISORY SERVICESAGENCY LINESBANK BRANCHBANK BRANCH NETWORKBANK EQUITYBANKING SECTORBANKING SERVICESBANKING SYSTEMBANKING SYSTEMSBEST PRACTICEBILATERAL AIDBORROWERBOUNDARIESBUSINESS ACTIVITIESBUSINESS CLIMATESBUSINESS SUCCESSCAPACITY BUILDINGCAPITAL BASECAPITAL INVESTMENTSCOMMERCIAL BANKCOMMERCIAL BANKSCONSTRAINTCONTRIBUTIONCONTRIBUTIONSCRISESDEPOSITDEPOSIT MOBILIZATIONDEPOSITSDEVALUATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDEVELOPMENT BANKSDIRECT LOANDISCLOSURE OF INFORMATIONDURABLEECONOMIC DEVELOPMENTECONOMIES OF SCALEEQUITY CAPITALEQUITY INVESTMENTEQUITY INVESTMENTSEQUITY INVESTOREQUITY RETURNSEQUITY STAKESEQUITY VALUESEXCHANGE RATEEXIT MECHANISMFIDUCIARY RESPONSIBILITYFINANCIAL CAPACITYFINANCIAL CRISESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIARYFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL SUPPORTFINANCIAL SYSTEMFISCAL YEARSFOREIGN CURRENCYFOREIGN CURRENCY LOANSFOREIGN EXCHANGEFOREIGN INVESTMENTFRONTIERFUND MANAGERFUNDING SOURCESHOLDINGHOLDING COMPANIESHOUSEHOLDSIFCIMFINSTITUTIONAL CAPACITYINSTITUTIONAL CAPACITY BUILDINGINSTRUMENTINTEREST RATESINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONALIZATIONINVESTMENT FUNDSINVESTMENT PROJECTSINVESTMENT RETURNSLENDING TECHNIQUESLIFETIMELIQUIDITYLIQUIDITY MANAGEMENTLOANLOAN PORTFOLIOLOAN PORTFOLIOSLOAN RATESLOCAL CURRENCYLOCAL FINANCIAL MARKETSLONG-TERM FINANCELOW INCOMELOW-INCOMELOWER INCOMEMATURITYMEDIUM ENTERPRISEMEDIUM ENTERPRISESMFIMFISMICROCREDITMICROENTERPRISESMICROFINANCEMICROFINANCE INSTITUTIONSMIDDLE EASTMULTILATERAL DEVELOPMENT BANKSNEW COMPANIESNONGOVERNMENTAL ORGANIZATIONNONPERFORMING LOANNORTH AFRICANOW ACCOUNTSOUTREACHPORTFOLIO RISKPORTFOLIO RISK MANAGEMENTPRIVATE CAPITALPRIVATE CAPITAL INFLOWSPRIVATE EQUITYPROFITABILITYPROFITABLE BUSINESSPROJECT DESIGNPUBLIC CONFIDENCEPUT OPTIONSREAL SECTORRECONSTRUCTIONREGIONAL BANKSREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREMITTANCEREMITTANCE SERVICESREMITTANCESREPAYMENTREPAYMENT RATERETURNS ON EQUITYRISK MANAGEMENTSAHARASAVINGSSAVINGS DEPOSITSAVINGS DEPOSITSSAVINGS SERVICESSENIORSERVICES FOR LOW-INCOME HOUSEHOLDSSHAREHOLDERSHAREHOLDERSSMALL BUSINESSESSMALL ENTERPRISESTART-UPSUB-SAHARAN AFRICASUBSIDIARYTECHNICAL ASSISTANCETRANSPARENCYWorld Bank10.1596/978-0-8213-7417-7