IFC’s Vision for Central America and Costa Rica: Interview with Sanaa Abouzaid - Regional Manager for Central America, International Finance Corporation (IFC)

Meeting Highlights:

• Central America as a region: Central America's resilience and growth, celebrating IFC record investment levels (USD 1,250 million during the last fiscal year) and ongoing opportunities. 
• Investment in Costa Rica: IFC is focused on catalyzing inclusive development in Costa Rica through quality job creation, SME financing, stronger infrastructure, and investments in healthcare and education.  
• IFC as a partner: IFC brings not only capital but also long-term partnerships, deep institutional networks, and advisory services to drive sustainable impact. 
• Costa Rica’s consistent economic performance: Bringing a strategic policy environment, and recent equity deals in pharma as key signs of continued opportunity. 
• Proud journey at IFC: Working across cultures and building trusted relationships with both business and government leaders. 
• Final message: Taking the complexity of today’s world with preparation and optimism as opportunities can be seized. 

‍

EF: Could you elaborate on the challenges and opportunities for economic growth in Central America, and how can the private sector contribute to the region’s development? 

SA: Despite significant challenges around the globe, the region continues to show remarkable resilience. What stands out most to me is the strength of its people and economies. 

The countries in this region each have unique political, social, and economic contexts, but they also share common ground. I’m optimistic about their future. We’ve seen steady growth, job creation, key investments, and strong remittance flows—all critical drivers of economic progress. That said, there are still hurdles to overcome, particularly in infrastructure development. Addressing these gaps could unlock further growth across other sectors, create more jobs, and strengthen regional economies. 

The recent visit to Central America by Makhtar Diop, IFC’s Managing Director, was very timely and underscored our institution’s commitment to this region, where we invested a record USD 1,250 million during the last fiscal year. It highlighted our focus on fostering private sector-led growth as a way to tackle pressing issues like unemployment, high migration rates, and low productivity. During his visit, Mr. Diop met with top government officials and private sector leaders to celebrate recent transactions and discuss ways to enhance financial inclusion, strengthen infrastructure resilience, and increase access to quality healthcare.  

Our regional portfolio has grown significantly over the past few years, which is encouraging. We are actively exploring new opportunities, identifying priority sectors, and finding ways to expand private sector involvement across Central America. The private sector is crucial for addressing the region’s challenges, creating high-quality jobs, and unlocking its full potential. 

EF: How does IFC, as part of the World Bank Group, prioritize development in the region, particularly in terms of fostering economic growth, and addressing challenges like migration and infrastructure needs? 

SA: Our primary focus is on fostering private sector development in these countries, ensuring they grow in a sustainable manner. This entails promoting higher economic growth and increased employment opportunities, with an emphasis on creating higher-quality jobs. We aim to achieve shared prosperity and strengthen education and health systems, which is reflected in our investment priorities. 

A significant portion of our efforts is dedicated to promoting inclusion, particularly through investments in the financial sector. Central America boasts robust, well-capitalized banks and non-banking financial institutions, and we take pride in the partnerships we have established with them across the region. These relationships enable us to extend support to small businesses, households, and homeowners' groups that we may not always be able to assist directly, through larger institutions. 

We are also actively involved in providing training, especially for small and medium-sized enterprises (SMEs) engaged in supply chains such as agriculture and manufacturing. Trust plays a crucial role in these endeavors, and we have managed to cultivate it effectively. This is an area where we intend to expand our efforts in the future. 

Infrastructure development is another key priority. There is a clear need for infrastructure improvements across the region, particularly in the transportation sector, and Costa Rica is no exception. We advocate for policy reforms that encourage investment in this area, and we stand ready to contribute to this progress. 

Currently, job creation is a top priority for our organization and the broader World Bank Group. This is particularly critical in this region, given the increasing migration trends. While remittances and migration provide necessary funds and support for numerous families, the local region is also experiencing a loss of talent. We aspire to retain more of this talent to drive regional growth. 

In terms of job creation, we concentrate on key sectors such as manufacturing, agriculture, tourism, and services, adopting a comprehensive approach. We address development through the lens of inclusion and sustainability, with a particular focus on climate-related issues and robust infrastructure development. 

EF: How does IFC position itself as a partner of choice when it comes to access to financing? 

SA: At IFC, our approach goes beyond financial considerations; it is about fostering lasting partnerships. Selecting the right partner is critical to us, and we focus on understanding who they are, their motivations, and the reasons behind their investments. While financial performance is important, we are equally committed to assessing the developmental impact of projects and ensuring alignment with our priority areas. For us, the philosophy and mission of a company are as significant as its balance sheet. Given the relatively small size of the region, we have built strong relationships over time and are well-acquainted with its key players. 

What differentiates IFC is the long-term value we bring to our partners. We do not just provide financing; we also attract additional funding from regional and global sources. Our reputation as a trusted investor often serves as a catalyst for others to join. When IFC is involved, it signals credibility and confidence. Moreover, we conduct rigorous evaluations of environmental, social, and governance standards, ensuring projects meet our criteria and instill confidence in other investors. Beyond funding, we offer advisory services to strengthen businesses in areas such as governance, and sustainability—enhancing our impact over time. 

Another key strength is our global reach. As the largest private sector development finance institution focused exclusively on emerging markets, no other organization matches our footprint. We operate across developing regions, leveraging insights from one market—such as Asia—and adapting them for others like Latin America or the Middle East. Our extensive network of experts and industry specialists enables us to connect companies seeking expansion or acquisitions. Facilitating these introductions is an integral part of how we support growth and collaboration. 

EF: What are the opportunities you see for Costa Rica? Is there anything that you're working on, and how do you see the perspectives of the country? 

SA: I am truly optimistic about Costa Rica, a country that has consistently made strategic decisions, particularly in developing its people. The results of these policies and a clear long-term vision are evident, especially in education and healthcare, where the country has achieved remarkable progress and stands out regionally. 

Economically, Costa Rica has demonstrated steady growth over the past 25 years and has successfully moved up the value chain. While its exports were once dominated by basic agricultural products like bananas, today the country is producing advanced medical equipment and boasts a thriving MedTech sector. Additionally, Costa Rica has positioned itself as a global leader in sustainable tourism and biodiversity, attracting both visitors and investors. Costa Rica serves as an excellent example of successful development, with its focus on diversification and value-added industries paving the way for continued growth. 

At IFC, we are actively engaged in Costa Rica on several fronts. Much of our work involves partnering with financial institutions to promote financial inclusion, support SMEs, and advance sustainability initiatives. We are also deeply involved in the medical sector, particularly pharmaceuticals. Recently, we completed two equity transactions with SteinCares and Farmanova—significant projects that reflect long-term confidence in the sector’s innovation. These efforts align with the growing need across the region for more affordable medicines, and it is inspiring to see Costa Rica taking a leadership role in this area. 

On the infrastructure side, we are collaborating with the government on the Puerto Caldera project, Costa Rica’s largest Pacific port. The current facility faces operational inefficiencies and bottlenecks that hinder growth. Over the past few years, we have worked closely with the Port Authority to structure a new concession that promises to transform operations. Once implemented, this project—set to operate under a public-private partnership (PPP)—will alleviate congestion, improve efficiency, and unlock substantial growth opportunities for manufacturing and exports. 

Costa Rica’s commitment to progress across multiple sectors is impressive, and we are proud to support its journey toward sustainable development and innovation. 

EF: What are your proudest moments over the past 21 years of your career?  

SA: One of the aspects I value most in my work is the opportunity to engage across cultures, countries, and regions. While this ability is shaped by my personality, upbringing, and education, it has been significantly enriched by working at an institution like IFC. It provides access to an extraordinary range of markets and opportunities for meaningful engagement. 

What stands out to me are moments spent with business leaders, government officials, and professionals from diverse sectors—sharing insights drawn from experiences across regions such as the Middle East, North Africa, Asia, and Sub-Saharan Africa. This work goes beyond delivering solutions; it is about connecting, listening, learning, and adapting successful approaches to different contexts. Development is fundamentally a platform, and institutions like IFC enable us to leverage that platform globally—to help others see beyond challenges and envision new possibilities. 

EF: Do you have any final message for the readers? 

SA: The world today is more complex than ever, and we are entering a period of sustained volatility. This is evident across multiple areas, but volatility itself is not inherently negative. While it can make us uneasy—we naturally prefer stability to plan and apply our skills—the world has always cycled between periods of calm and disruption. Political shifts and global tensions are recurring phenomena. Even in challenging times, opportunities arise. I have witnessed this firsthand during the 2008 financial crisis, the COVID pandemic, and the recent inflationary pressures. Each of these moments brought fear and uncertainty, but staying prepared and composed always created pathways for progress. My advice is to remain proactive—ask yourself, "What can I do? How can I maximize this moment?" 

On a national level, countries must move beyond reactive strategies and address their foundational issues. Central America offers a clear example. This is the time to diversify export markets, broaden partnerships, and rethink supply chains. Additionally, addressing inefficiencies is critical. Infrastructure—such as roads, ports, and airports—remains a significant challenge across the region. While these projects are substantial undertakings, they are essential for unlocking productivity across all sectors. Importantly, there are ways to execute them without excessively burdening government budgets, such as PPPs. 

Above all, human capital is paramount. Costa Rica serves as an exemplary model in this regard but remains an exception in the region. Greater investment in education and health is vital, with a particular emphasis on education to prepare individuals for the future. As AI and digital technologies advance rapidly, prioritizing tech skills and digital literacy is no longer optional; it is essential. 

On a personal level, lifelong learning is key. The traditional model of schooling followed by a lifelong career has become obsolete. Continuous learning, curiosity, and adaptability are now indispensable. Building strong connections, listening to diverse perspectives, staying open-minded, and acting decisively rather than reacting passively is crucial for personal and collective growth. 

‍