Sector focus

FMO specializes in providing the full range of financial services within four key sectors: Financial Institutions, Energy, Housing and Agribusiness, food & water. These interlinked sectors lay the foundation for FMO's lasting development impact. We also take on projects in other sectors where we expect a similar impact, partnering with banks or institutions that have substantial knowledge of these areas and can provide the necessary expertise. Agribusiness, food & water was introduced as a new key focus sector in 2011.

Financial and infrastructure sector projects are good for development and good for business: they often produce good development results, while simultaneously generating good returns for FMO. Projects in these sectors have knock-on benefits in terms of improving people's quality of life, creating jobs and providing the means for people to study and run businesses. For our clients, this sector-based structure delivers more specialized knowledge and greater efficiency. They know what they can expect from us, as our expertise relates directly to their business.

Over the recent years we also saw a shift in the global pattern of poverty, which is also having an impact on our regional project selection process. Twenty years ago more than 90% of the world's poor lived in low-income countries (LIC), as defined by the World Bank. Now, less than 30% of the poor live in so-called LIC countries. Many of these countries are becoming wealthier, changing the development landscape as they are increasingly able to address poverty with their own means. In the near future, we expect to see growth in private sector investment and private international foundations as well as tied aid from the former developing countries like China, India and Brazil. Some emerging market banks are now taking lead roles in world rankings. In Asia and Latin America in particular, liquidity is strong and competition among banks fierce.

FMO is responding to this shifting paradigm. We will in line with our mission, aim to stay additional to the market - sharing knowledge, taking on high-risk, high-development impact projects and placing sustainability at the fore. Each sector requires its own approach in doing so.

We are primarily active in Africa, Asia, Latin America & the Caribbean and Eastern Europe & Central Asia. Our Agribusiness clients are mainly based in Latin America and Eastern Europe, although we plan to expand further into Africa and Asia in the coming years. Our housing activities focus on Africa and Asia and we did a record number of energy deals in Africa in 2011. FMO's Financial Institutions portfolio is active in all regions.

N.B. 2010 figures of sectors are in some cases adjusted for comparative analysis between the new sector segmentations.