IIC’s Strategic Goals
According to the IIC’s 2011-2013 business plan, the twin pillars underpinning efforts to strengthen its development impact and ability to serve very small Latin American and Caribbean enterprises are growth and productivity. As part of its growth pillar, the IIC is planning to grow its current portfolio by 25 percent over the next three years, which would eventually exhaust its current capital resources. In 2010, however, the IDB and IIC renegotiated a long-term US$300 million multi-sector credit facility for the IIC, which is scheduled to expire at the end of 2015. As the IDB Group’s private sector window specializing in SMEs, the IIC will continue to use these resources to support innovative operations with a high and long-term development impact.
In furtherance of the IIC’s core mandate of maximizing its development impact within a framework of long-term financial sustainability, the overarching goals of its business plan for 2011-2013 include:
- Staying focused on SMEs, ensuring that at least 75 percent of the volume and 85 percent of the number of projects in its gross outstanding portfolio reach SMEs through direct or indirect interventions;
- Ensuring that all approved projects have a developmental impact (i.e., an average Development Impact and Additionality Scoring (DIAS) system score of at least 7), with the IIC’s active portfolio undergoing annual development impact reviews and independent ex-post evaluations as prescribed by good practice standards, and;
- Insisting on financial sustainability, requiring that the Corporation’s return on average shareholder’s capital for the 2011-2013 planning cycle is at or above the average U.S. dollar inflation rate.
The IIC is also working on strengthening its operational flexibility during the 2011-2013 business cycle, with activities geared toward improving its ability to serve very small enterprises, significantly expanding the volume and reach of its technical assistance products, and shifting the focus of its strategy away from programs toward SME end-beneficiaries. The IIC’s plans for the coming years also include continuing efforts to promote the transfer of knowledge through technical assistance, using its wealth of institutional knowledge on Latin American and Caribbean SMEs more efficiently, and sharing that knowledge through its THINK SME, THINK IIC initiative.