The International Finance Corporation (IFC), a member of the US-based World Bank Group that offers financial services to businesses and governments in developing countries with the aim of increasing economic growth, recently announced that it has signed a cooperation agreement with the government of Guinea-Bissau. The aim of the agreement is to expand access to finance for local small and medium-sized enterprises (SMEs) via the establishment of a leasing industry that would serve the local SME sector. IFC will also provide advisory and capacity building services for the government of Guinea-Bissau with the aim of reforming the country’s legal and regulatory framework for the leasing sector.
Mr Geraldo Martins, the Minister of Economy and Finance of Guinea-Bissau, said “we welcome this timely agreement which will help improve access to finance of SMEs and strengthen the private sector”[1]. Jérôme Cretegny, IFC’s Country Manager for Guinea-Bissau, added that, “we believe that access to finance will be substantially improved and will allow SMEs to acquire production equipment and as a result, contribute to the economic recovery as evidenced in all countries where a leasing program operates”[1].
IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013. In Guinea-Bissau, IFC focuses on the support of SMEs, the development of the private sector and the improvement of the country’s infrastructure. The leasing program of IFC focuses on ten “fragile”[1] and conflict-affected countries, including Guinea-Bissau. Switzerland’s State Secretariat for Economic Affairs provides financial support to this program.
By Alíz Crowley, Research Associate
About International Finance Corporation
The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, offers loans, equity investments, advisory and risk mitigation services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2014, IFC has 184 member countries that drive its policies and approve disbursements. In June 2014, IFC reported total assets of USD 84.1 billion, net income of USD 1.4 billion and return on assets of 1.8 percent.
Sources and Additional Resources
[1] International Finance Corporation, News, IFC signs a Cooperation Agreement with the Government of Guinea-Bissau to promote
MicroCapital, April 23, 2015, International Finance Corporation (IFC) to Provide $4.1m Risk Sharing Facility to Cameroonian Bank Banque Internationale du Cameroun pour l’Épargne et le Crédit (BICEC) for Agricultural Lending
MicroCapital, April 21, 2015, International Finance Corporation (IFC) to Provide Consulting Services to An Binh Joint Stock Commercial Bank (ABBANK) to Finance Small, Medium-sized Enterprises (SMEs) in Vietnam
MicroCapital, April 17, 2015, TriLinc Global Impact Fund Invests $15.5m in Africa, Latin America
MicroCapital Universe Profile: International Finance Corporation
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