MICROCAPITAL BRIEF: International Finance Corporation (IFC), UK’s Department for International Development (DFID) Invest $263m in New Global SME Finance Facility

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has invested USD 200 million in the Global SME Finance Facility, a program that combines “donor funding with funding from international development institutions to expand lending to small businesses in emerging markets.” The term “SME” refers to small and medium-sized enterprises. The facility is intended to support high-impact projects that may be considered risky, such as those in conflict areas, women-owned businesses and sustainable energy.

Investments in the facility are expected to grow to USD 600 million in the short term and could grow to USD 1.8 billion within an unspecified timeframe. TheUnited Kingdom’s Department for International Development (DFID), a development agency of the British government, also invested USD 63 million. DFID will also provide USD 52 million in advisory services and a grant of USD 4 million for operations support.

As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects. For the fiscal year 2010 – 2011, DFID spent GBP 7.6 billion (USD 11.9 billion) on international development.

By Brendan Millan, Research Associate

About International Finance Corporation (IFC): A member of the World Bank Group, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

About Department for International Development (DFID): Formed in 1997, the Department for International Development (DFID) is the department of the British government responsible for carrying out overseas development work. For the fiscal year 2010 – 2011, the British government, through DFID, spent GBP 7.6 billion (USD 11.9 billion) on international development. The main spending areas included government and civil society, health, economic growth, education, and humanitarian assistance.

Sources and Resources:

[1] International Finance Corporation: “IFC, U.K. Government Invest in Global Facility to Finance Small Businesses in World’s Poorest Countries” by John McNally. http://www.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/93D7F6A1ADF92057852579E6004F8B25

MicroCapital.or Article, April 19, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), Wells Fargo Partner To Launch $200m Facility to Increase Trade Finance for Banks in Emerging Markets, Half in Middle East, North Africa”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-wells-fargo-partner-to-launch-200m-facility-to-increase-trade-finance-for-banks-in-emerging-markets-half-in-middle-east-north-africa/

MicroCapital.or Article, March 29, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), Spain, Netherlands, Luxembourg Partner to Support Mobile Financial Services in Remote Regions of Latin America, Caribbean”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-spain-netherlands-luxembourg-partners-to-support-mobile-financial-services-in-remote-regions-of-latin-america-caribbean/

MicroCapital.or Article, March 8, 2012, “MICROCAPITAL BRIEF: International Finance Corporation (IFC), KfW Bankengruppe, German Federal Ministry of Economic Cooperation and Development (BMZ) to Invest $100m in Micro Finance Initiative for Asia (MIFA)”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-kfw-bankengruppe-german-federal-ministry-of-economic-cooperation-and-development-bmz-to-invest-100m-in-micro-finance-initiative-for-asi/

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

MicroCapital Universe Profile: Department for International Development (DFID), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Department+for+International+Development+%28DFID%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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