Washington, D.C, October 14, 2022 – IFC, a member of the World Bank Group, signed two agreements with the government of Switzerland today tosupportmarket and job creation and accelerate financial inclusion in emerging markets. Switzerland’s $30 million funding complements earlier contributions andwill support IFC efforts to improve access to finance for small and medium-sized enterprises (SMEs)and women-led businesses, reduce hurdles for doing business,unlock sustainable investments and promote inclusive jobgrowth in emerging, low-income and conflict-affected countries.
The Swiss State Secretariat for Economic Affairs SECO will provide $20 million to IFC over the next six years to support the development of legal and regulatory frameworksfor secure transactions, credit information and insolvencyand their associated electronic systems. This Global Financial Infrastructure Program builds on progress and results achieved during a previous partnership between IFC and Switzerland from2016 to 2021, which added 40.8 million individuals and firms to credit bureau coverage and enabled nearly 1.4 million SMEs to access credit secured by movable property. The new initiative willhelp establish and expand financial access for micro and small and medium enterprises (MSMEs), women-owned enterprises, and individuals with limited credit access.
SECO and IFCalso signed an agreement for a $10 million contribution to the IFC-managed Facility for Investment Climate Advisory Services (FIAS). FIAS is a collaboration of IFC, the World Bank, and 12development partnersto help emerging markets and developing economies—particularly low-income and conflict-affected states— to create markets, attractsustainable investment, and stimulate inclusive job growth.SECO is a longstanding partner of IFCand has contributed to the FIAS program since 1996.
"Private sector investment is critical as emerging markets seek to recover from the COVID-19 pandemic and mitigate the impacts of the wide range of crises, from conflicts and climate change to global supply chain disruptions.” said Makhtar Diop, IFC Managing Director. “SECO’s support for market creation and financial inclusion is a testament to the Swiss Government's commitment to foster inclusive private sector growth in some of the most challenging markets.”
“The global pandemic and energy crises have hit all segments of the economy, particularly SMEs that provide the bulk of jobs in most countries. In this difficult context, policymakers need to strive for a delicate balance between fostering growth and assuring financial stability”, stated Guy Parmelin, Federal Chancellor and Head of Switzerland’s Federal Department of Economic Affairs, Education and Research. “I am glad to renew our long-standing partnership with IFC in the area of responsible access to finance for SMEs in the financial infrastructure program. In addition, the work of FIAS is particularly important for local SMEs in our partner countries. We are convinced that a business-friendly environment is fundamental to enabling the private sector to compete, innovate, and create jobs.”
About IFC
IFC—a 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 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About SECO
The State Secretariat for Economic Affairs SECOimplements Switzerland's economic and trade policy measures for the benefit of developing countries. It coordinates its activities with the Swiss Agency for Development and Cooperation (SDC) and the Peace and Human Rights Division (PHRD) of the FDFA. The three administrative offices implement Switzerland's international cooperation together. For more information, visitwww.seco-cooperation.ch
About FIAS
The Facility for Investment Climate Advisory Services (FIAS) is a collaboration between 16 development partners—donor countries and philanthropic organizations—and the World Bank Group.http://www.thefias.info/. FIAS-supported work, managed and implemented by IFC, is organized into three strategic pillars: improving the business environment in client countries; expanding market opportunities; and strengthening firm competitiveness. Supporting these pillars are four programmatic themes that serve as guiding priorities across the portfolio: gender and inclusion; transparency and political economy; green competitiveness; and high-growth businesses.
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