MICROCAPITAL BRIEF: DFC Launches $75b “Roadmap for Impact” to Reach 30m in Developing Countries by 2025 with Healthcare, Financial Inclusion, Technology, Energy, Food Security, Water, Sanitation, Hygiene

The US International Development Finance Corporation (DFC), a government-backed institution, recently announced its first global development strategy, which is called “The Roadmap for Impact.” This Roadmap involves harnessing partnerships valued at a total USD 75 billion “to reach more than 30 million people in developing countries by 2025…[and] support the response to the COVID pandemic.” DFC plans to build these partnerships with both governmental and private organizations, creating “an inclusive, technology-driven approach” to finding innovative ways of reaching large numbers of clients. The strategy targets six sectors: (1) healthcare; (2) financial inclusion and strengthening financial systems; (3) technology and infrastructure; (4) energy; (5) agriculture and food security; and (6) water, sanitation and hygiene (WASH). Of this work, 60 percent is earmarked to take place in countries deemed fragile, lower income or both.

DFC Chief Executive Officer Adam Boehler, said, “Our new development strategy creates a roadmap to pursue the most impactful projects in the most underserved communities worldwide. This strategy builds on our current work and establishes goals to address the challenges that developing countries face, particularly related to responding to COVID-19. I’d like to thank our stakeholders for their input and advice in formulating our inaugural strategy.”

DFC was launched 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 organization has an investment cap of USD 60 billion to deploy in forms such as equity placements, insurance, technical assistance and research. DFC focuses its efforts on low-income and lower-middle-income countries in areas such as “energy, healthcare, critical infrastructure and technology.” Upon its founding, DFC took over the work of the Overseas Private Investment Corporation as well as the Development Credit Authority of the US Agency for International Development.

By Nathan Kiplagat, Research Associate

Sources and Additional Resources

DFC press release
https://www.dfc.gov/media/press-releases/dfc-announces-new-global-development-strategy-catalyze-75-billion-2025

DFC homepage
https://www.dfc.gov

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