IFC: investment of $45 billion blindfolded
“Quite shocking”, said Anouk Franck from Both ENDS. “The International Finance Corporation is unaware of the social and environmental consequences of their investments in private enterprises in developing countries and emerging economies. This was observed by the Ombudsman of the IFC itself.”
No checks
The IFC is the worlds’ largest credit bank which focuses on businesses in developing countries. At the moment, IFC has a loan portfolio of approximately $45 billion. The bank issues credits only when the investments meet all kinds of requirements. These conditions were set by the IFC itself in 2006 and can be summarized as “do no harm”, meaning that the impact of the activities arising from the credit must not be harmful to the people or the environment where companies operate. It’s a good thing that IFC sets such requirements, but they must also be complied with. Whether that happens is unknown, because the IFC carries out almost no checks on the consequences. Therefore, the IFC is investing blindfolded.
Stricter rules
Anouk Franck: “Last year IFC imposed stricter rules on itself. They are now more extensive and state that its investments should have a positive impact on the development outcome. But this makes little sense without checks. The IFC Ombudsman states in his report that he even found examples of companies that did not meet the necessary lending requirements.
They were thus guilty of breach of contract, but were still granted more IFC credits.
Civil society pressure
The Ombudsman began his investigation after civil society organizations had expressed their concerns about the enormous growth of IFC investments. The bank increasingly made use of intermediaries such as commercial banks, insurance companies, micro financiers and asset managers for providing credit. This obviously has not helped rule compliance.
IFC should improve
Dutch investments in developing countries also receive IFC loans. My opinion is that the companies that are financed by the IFC should contribute to sustainable development. Therefore the IFC should take off its blindfold, comply with its own rules and carry out checks on the consequences of its lending.
Anouk Franck is programme officer for policy development and specialized in International Financial Institutions.
For more information see the Ombudsman report and the summary of that report made by our partner Eurodad.
Read more about this subject
-
Letter / 14 juli 2026
Statement on CAO Cambodia Microfinance Case
The independent complaints mechanism of the International Finance Corporation (IFC) and the World Bank Group found that the IFC violated its own Environmental and Social Sustainability Framework by investing in six banks providing microfinance in Cambodia.
-
News / 6 juli 2026Strengthening Women's Land Rights Across the Rio Conventions
From 29 June – 2 July 2026, Tamara Mohr, GAGGA coordinator at Both ENDS participated in the 4th convening of the Women's Land Rights Initiative (WLRI) in Nairobi, Kenya.Hosted by the Robert Bosch Stiftung, TMG Research and the Huairou Commission, the event brought together grassroots organisations, (inter)national NGOs, government institutions and donors from around the world.
-
Publication / 3 juli 2026
-
Dossier /Communities Regreen the Sahel
In various countries in the Sahel, vast tracts of land have been restored by the local population by nurturing what spontaneously springs from the soil and protecting the sprouts from cattle and hazards.
-
News / 2 juli 2026Land restoration can help mitigate and resolve conflict - but only if everyone has a seat at the table
Can restoring degraded land also help reduce conflict? According to experts from Niger, Ghana, the Netherlands and other regions, the answer is yes - but only when restoration is rooted in inclusive land governance, local ownership and social cohesion.
-
Dossier /Gas in Mozambique
In 2011 one of the world’s largest gas reserves was found in the coastal province of Cabo Delgado, in the north of Mozambique. A total of 35 billion dollars has been invested to extract the gas. Dozens of multinationals and financiers are involved in these rapid developments. It is very difficult for the people living in Cabo Delgado to exert influence on the plans and activities, while they experience the negative consequences. With the arrival of these companies, they are losing their land.
-
Dossier /Finance for agroecology
The lion's share of public budgets for climate, agriculture and development still goes to conventional agroindustrial projects that contribute to the current climate, food and biodiversity crises. Both ENDS and our partners are calling for a transition to agroecological practices that are people- and environment-friendly.
-
Dossier /Trade agreements
International trade agreements often have far-reaching consequences not only for the economy of a country, but also for people and the environment. It is primarily the most vulnerable groups who suffer most from these agreements.
-
Publication / 18 juni 2026
-
Publication / 12 mei 2026
-
Press release / 12 mei 2026UN report warns of a growing sand crisis - The Dutch dredging sector plays a key role in global sand extraction
GENEVA/UTRECHT, 12 May 2026 – A new report by the United Nations Environment Programme (UNEP), Sand and Sustainability: An Essential Resource for Nature and Development, warns that global demand for sand is exceeding ecological limits. Large-scale extraction of sand from marine and coastal ecosystems is leading to biodiversity loss, damage to coastal communities and increasing risks in an era of climate change. Dutch dredging companies play a prominent role in this as global market leaders in large-scale sand extraction and land reclamation. “Our analyses show that the dredging sector operates globally within a system in which ecological damage and the consequences for coastal communities are systematically underestimated, whilst transparency and effective oversight are often lacking,” says the Dutch environmental and human rights organisation Both ENDS, which contributed to the report.
-
News / 14 april 2026New report: Phasing out ISDS in the Netherlands: a roadmap
Today, Both ENDS and SOMO are publishing the report Phasing out ISDS in the Netherlands: a roadmap. In the report, we highlight the Netherlands’ role in the ISDS system and offer practical guidance on phasing out ISDS.
-
Dossier /Rights for People, Rules for Corporations – Stop ISDS!
Indigenous communities in Paraguay saw their attempts to regain their ancestral lands thwarted by German investors. In Indonesia, US-based mining companies succeeded to roll back new laws that were meant to boost the country’s economic development and protect its forests. This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ clauses that are included in many such treaties.
-
Publication / 14 april 2026
-
Publication / 10 april 2026
-
News / 10 april 2026Both ENDS: strengthened FMO complaints mechanism is a step forward, but major gaps remain
Both ENDS welcomes the strengthened Independent Complaints Mechanism (ICM) of development finance institutions FMO, DEG and Proparco as an important step forward in accountability. Working directly with communities affected by development projects, we see daily how essential it is that people can access justice when they are harmed in the name of development. For many communities, this mechanism is one of the few avenues through which harm can be formally recognised and addressed in relation to these development banks.
-
News / 9 april 2026Minister Sjoerdsma hosts roundtable conversations with civil society
This week, Minister Sjoerdsma organized roundtable conversations with civil society organizations – a valuable initiative that brings together Dutch civil society voices to address critical challenges faced by democratic societies.
-
News / 26 maart 2026New project: Climate Accountability in EU Trade
Through its new project “Climate Accountability in EU Trade: Testing the SEP and DAGs for Climate-Linked FTA Enforcement” Both ENDS, with support from the European Climate Foundation, is exploring how the European complaints mechanism (SEP) and Domestic Advisory Groups (DAGs) can be more effectively used to advance climate accountability. The project runs for 13 months, until end of 2026.
-
News / 24 maart 2026Statement: Invest in local leadership for tropical forest management and local economies
IUCN-NL, Both ENDS, and 16 other Dutch and international civil society organizations (CSOs), networks, and expert groups are calling on the Dutch government to invest more strongly in locally led forest management and forest-based economies. This should be done within the framework of Dutch international cooperation and its associated policy instruments.
-
News / 19 maart 2026Winners of the ILED ‘Women Are Educators Award’ announced
Our partner organisation ILED (Indigenous-led Education Network) announced the seven winners of the ILED ‘Women Are Educators Award’ this month. These are women who play extraordinary roles in passing on knowledge, whether in formal or informal educational settings.
