IDA Private Sector Window (PSW)

December 1, 2023

Supporting Growth and Livelihoods Where It’s Needed Most

The private sector is essential for creating jobs and increasing incomes in the world’s poorest countries. But the firms that form the backbone of the economy lack access to the capital they need to invest in their own future, especially in countries affected by fragility and conflict. Weak macroeconomic and regulatory environments, infrastructure bottlenecks, limited availability of skilled labor, and political instability dampen investment by the private sector. 

IDA PSW enables IFC and MIGA to support the private sector through high-impact investment projects by blending concessional funds with commercial finance.  IDA PSW helps mitigate risks and fill financing gaps in the market, providing first-loss guarantees on credit and market risk, facilitating longer-tenor loans, and providing local currency in markets where hedging options are limited. Every $1 of IDA PSW funds mobilizes over $5 of commercial finance (roughly $2 from IFC and MIGA investment and $3 of third-party investment).