The US International Development Finance Corporation (DFC) and Georgia-based Gazelle Finance recently launched a facility to assist Ukrainian enterprises that have been displaced to Georgia as a result of the war between Russia and Ukraine. In particular, the funding is for technical assistance for small and medium-sized enterprises (SMEs). DFC CEO Scott Nathan noted the intent of the facility to “protect jobs and create new market opportunities [for participating companies] to grow their businesses.” The new program is to work in concert with a technical assistance program launched in 2021 by the US Agency for International Development and Gazelle Finance. The pre-existing program has a three-year mandate to assist firms in adjusting to the COVID-19 pandemic.
Gazelle Finance, established in 2013, is a fund manager that targets rapidly growing SMEs with loans ranging from USD 100,000 to USD 1 million. The firm, which has offices in Georgia and Armenia, launched its Gazelle Fund in 2017 with a volume of USD 31 million.
DFC was initiated in 2020 to “help businesses expand into emerging markets, foster growth and improve lives in the developing world while reinforcing US foreign policy and national security interests.” The organisation issues equity placements, insurance, technical assistance and research in sectors such as energy, medicine, infrastructure and technology. During 2021, DFC brought in net income of USD 162 million, closing the year with assets of USD 15 billion.
Founded in 1961, USAID provides international economic and humanitarian assistance. It is active in areas such as economic growth, agriculture, trade, health, democracy, conflict prevention and humanitarian assistance. The agency had a budget of USD 37 billion for 2021.
By Saulius Simonas Ramanauskas, Research Associate
Sources and Additional Sources
DFC press release
https://www.dfc.gov/media/press-releases/dfc-and-gazelle-finance-launch-facility-support-ukrainian-companies-displaced
Gazelle Finance homepage
https://gazellefinance.com
DFC homepage
https://www.dfc.gov
USAID homepage
https://www.usaid.gov
Previous MicroCapital brief on USAID
https://www.microcapital.org/microcapital-brief-dfc-usaid-african-unions-auda-nepad-partner-to-expand-access-to-finance-for-msmes-in-tanzania-zambia-malawi-nigeria
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