Why is IFC investing in the palm oil sector?
IFC believes that investing in the palm oil sector results in many development benefits for local communities. Oil palm can be readily cultivated in many developing countries and is highly efficient in producing a valued commodity with a variety of uses. Palm oil production can be the basis of a thriving local economy, producing jobs and other benefits for local people. For example, in Indonesia the sector directly and indirectly employs between four and six million of the economically active rural population and supports up to 36 million rural population. The rural population constitutes the majority of the country’s poor. The sector has proved a powerful tool for poverty alleviation in Indonesia. Significant improvement in living standards, including income, education and health levels for millions of people are attributed to the economic development benefits of oil palm cultivation. In addition, because IFC applies strict environmental and social standards to the projects it invests
