WASHINGTON D.C., May 5, 2020 -- IFC, a member of the World Bank Group, and DEG - Deutsche Investitions- und Entwicklungsgesellschaft, have agreed to collaborate more closely to create markets, mobilize private sector investment, and support economic recovery in developing countries in the wake of the COVID-19 global crisis.
Seeking to address the need for increased collective action among development finance institutions, the Joint Collaboration Framework Agreement (JCFA) will help leverage the partners’ collective strengths to deliver needed development impact in some of the world’s most challenging settings.
The agreement addresses a full range of collaboration activities with an emphasis on three key areas. First, it details the approach for helping to build a pipeline of bankable and high-impact projects aimed at laying the groundwork to attract investors into developing countries. Second, it promotes greater reciprocity in project co-financing arrangements and allows IFC to join transactions originated by DEG.
Third, it is aligned with the “Blended Concessional Finance Principles for Private Sector Projects,” a disciplined and targeted approach to blending funds from concessional donor and commercial sources, as an integral part of the activities covered by the JCFA.
“Building on our successful collaboration to help countries achieve the Sustainable Development Goals, we will intensify our work to accelerate the flow of private capital - domestic and foreign - into productive investment in the countries in which we operate. This underlines the critical importance of coordinating the work of DFIs and MDBs to maximize development impact,” said Philippe le Houérou, the Chief Executive Officer of IFC.
Christiane Laibach, CEO of DEG, underlined: “ We are pleased to continue and deepen our long-standing cooperation with IFC. As financial institutions for the private sector, we aim to actively support companies in developing and emerging markets. In particular during these challenging times collaboration among international institutions is of utmost importance for our clients and complements effectively DEG’S own programmes like the “BSS – COVID Rapid Response ”.
In March, IFC announced that it would make $8 billion available to support private companies and their employees hurt by the economic downturn caused by the spread of COVID-19.The bulk of the IFC financing will go to client financial institutions to enable them to continue to offer trade financing, working-capital support and medium-term financing to private companies struggling with disruptions in supply chains. IFC’s response will also help existing clients in economic sectors directly affected by the pandemic--such as tourism and manufacturing—to continue to pay their bills.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
About DEG
For almost 60 years DEG has been a reliable partner to private-sector enterprises operating in developing and emerging-market countries. We provide our customers with tailor-made solutions, including financing, promotional programmes and advice tailored to individual needs. They can thus develop successfully and sustainably, while generating local added value and creating qualified jobs. With our portfolio of around EUR 9 billion in approximately 80 countries we’re one of the world’s largest private-sector development financiers.
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Contacts
IFC: Nadya Nikiforova Email: nnikiforova@ifc.org DEG (Cologne): Barbara Schrahe-Timera Email: presse@deginvest.de
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