DFIs join forces to finance local private sector response to COVID-19

The development finance institutions (DFIs) of 16 Organisation for Economic Co-operation and Development (OECD) countries, grouped under the DFI Alliance, have committed to work collaboratively to meet the unprecedented global demands resulting from the outbreak of COVID-19.

"This unparalleled health crisis will seriously impact developing countries in ways that will impede their economic and social progress. The ability of DFIs to mobilise significant financial resources and bring technical expertise to private sector enterprises in emerging and frontier markets will be more important than ever," said the DFI Alliance in a statement.

The DFI Alliance members, through enhanced cooperation and the leveraging of pooled resources, will focus on reducing the impact of COVID-19 on essential business activities in these countries. "Together, DFIs are working around the world to help resolve current liquidity issues in financial sectors, support the viability of existing companies impacted by the virus, and promote new investment in goods and services necessary to global health, safety, and economic sustainability. The DFI Alliance is developing mechanisms designed to sustain companies, return them to full production, and restore employment opportunities essential to the societies in which they operate," continued the statement.

In addition, the DFI Alliance is identifying opportunities to finance the local private sector response to the health crisis with the goal of speeding recovery. The DFIs have committed to working together to identify where needs in the private sector are greatest and to find solutions that will reduce the impact of COVID-19 around the world.

The US International Development Finance Corporation (DFC), FinDev Canada, and the Association of European Development Finance Institutions (EDFI), currently counting 15 bilateral member institutions within the field of development finance for the private sector in emerging and frontier markets, formed the DFI Alliance in 2019 as a framework for their active cooperative engagement.

EDFI member institutions include: BIO (Belgium), BMI/SBI (Belgium), CDC (United Kingdom), Cofides (Spain), KfW-DEG (Germany), Finnfund (Finland), FMO (The Netherlands), IFU (Denmark), Norfund (Norway), Austrian Development Bank OeEB (Austria), PROPARCO (France), Sifem (Switzerland), Simest and CDP International Development Finance (Italy), Sofid (Portugal), and Swedfund (Sweden).

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