The US government’s International Development Finance Corporation (DFC) recently committed to doubling its USD 48 million debt funding of US-based asset management firm MicroVest, aiming to “expand financing opportunities for microfinance and SME [small, and medium-sized enterprise] finance institutions that support underserved microenterprises and small businesses worldwide.”
Algene Sajery, the head of global gender equity initiatives for DFC, stated, “DFC is pleased to support MicroVest’s flagship levered fund, which has a track record of success promoting gender equity through financing around the world.”
MicroVest is a for-profit investment firm promoting “financial inclusion by investing in responsible financial institutions that serve underbanked people and businesses.” It was founded in 2003 and invests in 66 institutions that serve approximately 11 million customers in 30 countries as of 2021.
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 (OPIC) as well as the Development Credit Authority of the US Agency for International Development.
By Harriet Ritchie, Research Associate
Sources and Additional Resources
MicroVest press release
https://microvestfund.com/microvest-secures-debt-financing-from-the-u-s-international-development-finance-corporation-to-advance-financial-inclusion-in-emerging-markets/
MicroVest homepage
https://microvestfund.com/
US International Development Finance Corporation homepage
https://www.dfc.gov/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
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