What key principle underpins the IFC's investment strategy?

The key principle that underpins the IFC's investment strategy is financial sustainability. This focus ensures that investments not only generate profit but also contribute to long-term economic growth, stability, and resilience in the markets where they operate. Financial sustainability is critical because it allows projects to become self-sustaining over time, minimizing reliance on external funding sources.

By prioritizing financial sustainability, the IFC aims to support businesses that will be viable in the long run, stimulating productivity and job creation while also fostering development across various sectors. This principle aligns with the IFC's mission to promote private sector investment in developing countries, thereby reducing poverty and increasing shared prosperity. Balancing financial returns with developmental outcomes is essential for the IFC to achieve its goals successfully.

While other principles such as social equity, technological innovation, and environmental resilience are important, they typically serve as complementary aspects that enhance or support the overarching aim of financial sustainability in the context of investment strategies.