positive development impact

Strategy

Our strategy focuses on sustainability, partnerships and four sectors: Financial institutions, Energy, Housing, and Agribusiness, food & water. These sectors are integral to economic, social and environmental progress. That is why FMO selected projects in these sectors as they are believed to create high, positive developmental impact. Additionally, projects in these sectors potentially generate good financial returns.

Our expertise in our 'focus' sectors means we can offer clients extensive knowledge and added value. We also take on projects in other sectors where we expect positive development outcomes. If we do not have the necessary expertise in-house, we partner with other banks or institutions that do.

We aim to finance at least 35% of our portfolio in low-income countries, as defined in the World Bank list of January 1, 2008. Ninety percent of the people under the poverty line used to live in these low-income countries. However, we see that people living below the poverty line inhabit countries that are now considered middle-income countries. This could mean that setting a target for 35% in low-income countries is no longer useful to safeguard development impact for those who live below the poverty line. The strategy 2013-2016, which is currently being developed, will look at the various possibilities to safeguard this impact. Although we do not directly finance those below the poverty line we do believe our work has a positive impact on their livelihoods.

Our progress in 2011 on our strategic priorities is described in more detail in the Report of the Management Board.

 

Committed Portfolio per income group

rated on date of commitment, incl. government funds

Country segmentation

2011

2010

2009

 

(€ x mln)

%

(€ x mln)

%

(€ x mln)

%

Low

2,599

44

2,233

42

1,834

40

Lower-middle

2,198

38

2,135

40

2,012

44

Upper-middle

1,077

18

924

18

752

16

Total

5,874

100

5,292

100

4,598

100


Note: The country segmentation is based on the World Bank country list definitions, as per January 1, 2008, for low, lower-middle and upper-middle income countries. For more information on World Bank country list definitions visit http://data.worldbank.org/about/country-classifications