IFC signs partnership with Pacific Islands Investment Forum and embarks on survey of funds amid COVID-19

Sydney, Australia, July 1, 2020 – IFC, a member of the World Bank Group, has signed an agreement with pension, provident and sovereign funds who are members of the Pacific Islands Investment Forum (PIIF) with the aim of helping to bridge the infrastructure investment gap in the region which it is estimated will amount to US$45 billion over the next 12 years.

The thirteen funds who are members of PIIF play a critical role in their economies, collectively owning more than US$8 billion worth of assets. As COVID-19 brings a wave of unprecedented volatility across the world, the first step of the new agreement is for IFC and PIIF to conduct a survey to understand the impact of the pandemic on PIIF fund members.

“During times of crisis, PIIF member funds are regularly called upon to provide economic and social support across a range of areas,” PIIF chairman and Samoa National Provident Fund CEO, Pauli Prince Suhren, said. “So, we aim to share the results of this survey among our member funds as we adapt to this unprecedented environment. We’re also working with IFC to help achieve our long- term vision of cross-border investment in the region, to deliver better infrastructure and services and, most importantly, better returns for the people who are members of our funds.”

The co-operation agreement with IFC will allow PIIF to explore co-investment opportunities with IFC as well as opportunities for funds to go beyond their own borders for investment in other countries’ industries, services and infrastructure.

“In the Pacific, these funds play a dominant role in financial systems and are major employers, so it’s important not only to assess the impact of COVID-19 now, but also to look to the future and work on ways to allow for greater co-investments across the Pacific,” IFC Country Manager – Australia, New Zealand, Papua New Guinea and the Pacific Islands, Thomas Jacobs, said. “The interest of the members of the funds is paramount, and future investments should be low cost with the right level of risk and suitable to the needs of pension fund members.

While co-investment brings two major benefits to PIIF members- improved infrastructure and services and better returns – some funds will first have to address their regulatory bottlenecks that currently prevent them from investing overseas.

“We believe that by first gathering and sharing information in this manner, the Pacific region’s funds will bolster their approach to handling the economic impacts of the outbreak,” IFC Senior Financial Sector Specialist, Aaron Levine said. “At the same time, we have the opportunity to use our global expertise to help PIIF member funds achieve their long-term goal of branching out across the Pacific and delivering better returns for workers.”

Working with the World Bank Group’s Finance, Competitiveness & Innovation Global Practice has enabled PIIF to benefit from global experience and best practices.

We are working with PIIF to develop the most appropriate co-investment platform option for the Pacific,” said Ekaterina M. Gratcheva, a Lead Financial Officer at the World Bank. “We are drawing on global experience and knowledge to bring the best approaches.

IFC’s support for PIIF has been complemented by the support of the Australian and New Zealand Governments under the Pacific Partnership. Australia, New Zealand, and IFC are working together through the Partnership to stimulate private sector investment and reduce poverty in the Pacific.

About IFC

IFC – a sister organization of the World Bank and a member of the World Bank Group – is the largest global development institution that focuses on the private sector in emerging markets. The IFC works in over 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In the fiscal year 2019, IFC invested more than US$19 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity.

For more information, visit the IFC profile on developmentaid.org. Opportunities from IFC are published on DevelopmentAid under Funding Agency World Bank.