MICROCAPITAL BRIEF: US International Development Finance Corporation (DFC) Launches, Combining Efforts of OPIC, USAID’s DCA with Investment Cap of $60b to Focus on Low-income, Lower Middle-income Countries

The government-backed US International Development Finance Corporation (DFC) recently launched with goals 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.” DFC is taking over the work of the Overseas Private Investment Corporation, which had similar goals and an investment cap of USD 29 billion, and the US Agency for International Development’s Development Credit Authority, which provided a smaller amount of funding for lenders to small and medium-sized enterprises in developing countries. DFC has an investment cap of USD 60 billion to deploy in forms such as equity placements, insurance, technical assistance and research. DFC will focus its efforts on low-income and lower middle-income countries, while continuing OPIC programs such as the 2X Women’s Initiative.

Sources and Additional Resources

DFC press release
https://www.dfc.gov/media/press-releases/us-international-development-finance-corporation-begins-operations

Past MicroCapital coverage of OPIC
https://www.microcapital.org/?s=opic

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