DFC approves more than $1.4bn in new investments
The U.S. International Development Finance Corporation (DFC) board of directors has approved nine investments totaling $925 million this quarter, advancing the agency’s development mission and bolstering President Biden’s Build Back Better World (B3W) Initiative. The agency has also approved 32 smaller investments totaling more than $500 million since the last quarterly board meeting in June 2021. These approvals bring total DFC investments approved over the last quarter to more than $1.4 billion across 40 distinct projects, DFC’s largest number of project approvals within a single quarter to-date.
“DFC’s newly approved investments will help us tackle the developing world’s most pressing challenges,” said acting CEO and president Dev Jagadesan. “Our diligent, hardworking team has driven an incredible number of highly developmental investments this quarter – a remarkable feat at any time, but even more so in the context of the ongoing Covid-19 pandemic.”
African investments approved by the board of directors this quarter include:
– Investing in a women-led, impact-oriented credit fund: DFC’s $25 million investment in PG Impact Credit Strategies aims to improve the lives of the underserved in sub-Saharan Africa, Latin America, South Asia and South East Asia by providing credit to small and medium-sized companies with impact-oriented operations.
– Expanding renewable energy in West Africa: A direct equity investment into Daystar Power Group, a Nigeria-based company that offers solar and hybrid power solutions to commercial and industrial clients will help reduce the cost of power, increase reliability of supply, and reduce pollution in Nigeria, Ghana, Senegal and Togo.
– Bolstering emerging technology in Africa: A $10 million equity investment in Atlantica Ventures Fund I will help new and emerging technology start ups in sub-Saharan Africa improve data-driven digital platforms finance and logistics.
– Growing affordable housing in West Africa: A $256 million guaranty to CRRH will drastically increase capital for home loans to low- and middle- income households in West Africa, contributing to a more formal, stable, and permanent long-term mortgage market in the region.
Additional African projects approved by DFC since its last quarterly board meeting include:
– Expanding fintech in Africa and Asia: A $20 million direct loan to help Lendable Inc provide on-lending debt facilities to financial technology companies operating in Africa and Asia, helping to strengthen an important emerging sector in those markets.
– Expanding SME lending in Mozambique: A $8.25 million loan portfolio guaranty with Absa Bank will promote lending to SMEs, particularly agriculture SMEs, with support from USAID/Mozambique.
– Strengthening Kenya’s health sector: A $4 million loan portfolio guaranty will support Sidian Bank Limited in lending to health SMEs, with support from USAID/Kenya, in order to improve healthcare and related services in Kenya.
– Growing capital for African farmers: DFC’s $50 million loan to ETG promotes a two-way vertical integration of the supply chain for African farmers, specifically aiming to increase working capital for maize, cashew, and pulses exports.
– Promoting agriculture and WASH in Senegal: A $10 million loan portfolio guaranty with multilateral finance institution Union des Caisses du Crédit Mutuel du Sénégal (UCCMS) will promote lending to Senegalese small- and medium-sized enterprises engaged in agriculture and WASH activities, aligned with USAID/Senegal’s priorities.
– Bolstering agriculture and food security in Niger: A $3 million loan portfolio guaranty with Orabank Niger will help encourage lending in agriculture and livestock sectors, aligned with USAID/Niger’s resilience strategy.
– Supporting the health sector in Kenya: A $10 million loan portfolio guaranty to Equity Bank (Kenya) Ltd will support additional lending to health SMEs, with support and coordination from USAID/Kenya.
– Increasing access to higher education in Africa: A $7 million loan to the Future of Work Fund, managed by CHANCEN International Rwanda Ltd, will help to establish a $20 million fund that will offer Income Share Agreements to finance marginalised students’ studies at select partner educational institutions across Eastern and Southern Africa, unlocking not only access to high quality education but also future work opportunities for students.
– Improving health and quality of life through clean cooking solutions in Africa: A $10 million loan to Spark+ Africa Fund will enable the fund to further invest across the value chain that supports the delivery of clean cooking solutions to communities across Africa.
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