In a move to finance the solutions to the most critical challenges faced by the developing world today, the U.S. International Development Finance Corporation (DFC) has backed the private sectors. It has approved 22 transactions worth more than $697 Million across various sectors in the second quarter of fiscal year 2024.
DFC investments adhere to high standards and promote development towards the environment, human rights, and worker rights. It has invested in the sectors including healthcare, energy, agriculture, infrastructure, to small business and financial services.
Among the approved projects, some significant investments were made in Indian sectors to boost sustainable agriculture practices, strengthening food security, and other development promoting deals.
A loan guarantee of $16.5 million benefiting Ecozen Solutions will support the use of climate-smart technology such as smart solar-powered irrigation pumps and distributed off-grid, on-farm cold storage solutions for farmers. This will improve production, reduce food loss, and decrease emissions.
Another $5.5 million loan guarantee was approved for RBL Bank,to bolster food security in India through WayCool Foods and Products Private Limited. This initiative will support the company’s expansion of its sourcing and food distribution network across India while mitigating post-harvest losses in the local supply chain, especially as it ventures into new regions.
An equity investment was provided to Iron Pillar India Fund II of $10 million to provide growth capital supporting innovative and impactful technology-enabled enterprises.
Moreover, DFC is extending its support to development programs in India and other two countries Laos and Vietnam with nearly $800,000 in political risk insurance allocated to The Asia Foundation. This coverage will provide protection against losses related to political violence, enabling the Foundation to promote economic reform, women’s empowerment, and governance reforms in these countries.
In addition to these projects, DFC’s board of directors approved several others:
Up to $250 million loan was provided to Africa Finance Corporation in order to boost infrastructure in the African Continent. Adding to that fortifying a crucial pan-African multilateral development finance institution, a $20 million loan to the African Local Currency Bond Fund is also given to capital market development particularly for women-led businesses across Africa.
Across Sub-Saharan Africa a $65 million loan was provided to SFC Finance known as AfricInvest Private Credit, to Support Small Businesses which will facilitate lending to small businesses, particularly benefiting women-owned and women-led enterprises.
In Columbia, a $150 million loan was provided to Nubank Colombia for enhancing access to Credit in Colombia by expanding credit card and digital banking operations, especially for underserved communities in Colombia.
Senegal received an $81 million loan to VACAP Hospitality S.A. to finance two new hotels in fostering local economic growth and job opportunities, particularly for women.
Furthermore, Sub-board level investments were also approved, such as:
Cosami R.L. Cooperative in collaboration with USAID/Guatemala received a $20 million loan to support low-income mortgages for rural Guatemalans, facilitating home construction.
A $5.5 million loan to Diaouné Agro-Industrie SARL to boost cashew nut processing in Guinea, creating jobs and improving incomes in rural areas.
QuantumID Technologies in Senegal got a $5 million loan to SASU for expanding e-commerce solutions, contributing to economic growth.
In collaboration with USAID/El Salvador, a $6 million loan was given to Flexiplan to increase access to motorcycle financing for underserved populations, improving mobility, income-generation opportunities, and quality of life for communities across the country.
With catalytic funding from USAID/El Salvador, an equity investment of up to $2.5 million in ICV Delta Fund I, LP to support the fund’s investment in early-stage technology entrepreneurs that provide innovative solutions for underserved communities and small businesses in Northern Central America.
An equity investment of up to $15 million to Inside Equity Fund II to support the fund’s expansion of investments in underserved small businesses in Southeast Africa.
Loan guarantee of $20 million to JSC ProCredit Bank Georgia to advance lending to small businesses in Georgia with a focus on lending to green ventures and women-owned and women-led enterprises.
Upto $4 million equity investment in Kamay Ventures I L.P. to support the fund’s investment in early-stage technology entrepreneurs providing solutions in the consumer supply chain, including the agriculture and food systems, distribution and logistics, and fintech sectors across Latin America.
Technical assistance grant of $500,000 to Pezesha Africa Limited to provide the enterprise capital to leverage data science, machine learning, and other advanced computing technologies to further develop its credit scoring algorithm, enhancing its sustainable lending practices to small businesses.
Loan of $5 million to QuantumID Technologies Senegal SASU to provide financing to expand the company’s proprietary technology, management systems, and last mile services to support e-commerce in Senegal.
Investment in Regenera Ventures I of up to $4 million equity to help catalyzing impact investments in rural Mexico to support regenerative agricultural practices. This will positively impact biodiversity, soil quality, and local communities in rural areas across the country.
Again with an emphasis on women-owned and women-led businesses a $10 million loan was given to Rentandes S.A.S to fund the expansion of the company’s commercial equipment leasing portfolio for small businesses in Colombia.