MICROCAPITAL BRIEF: Banco del País, Citibank, DFC, Microsoft, Government of Taiwan, Collaborate to Support Women-led SMEs, “Gender-smart” Investing, Technology Infrastructure

The US International Development Finance Corporation (DFC), a government-backed institution, recently announced it will participate in the following initiatives promoting the economic empowerment of women:

1) The office of the US President and DFC increased the target of funds to be mobilized through the 2X Women’s Initiative of the Women’s Global Development and Prosperity (W-GDP) Initiative to USD 6 billion. 2X Women was launched in 2018 and has since documented USD 3 billion in funds directed from multiple sources to firms owned by women, led by women, disproportionately employing women or disproportionately benefitting women.

2) A loan package for the commercial bank Banco del País of Honduras to “nearly double maximum loan tenors for” its small and medium-sized enterprise (SME) clients, especially those led by women. The loan includes USD 92 million from DFC and “additional financing from a Citibank loan-term loan.”

3) A collaboration with US-based technology firm Microsoft to develop “information and communications technology infrastructure” intended to bridge the “digital divide” by serving entities such as educational institutions.

4) Training programs for women entrepreneurs and investment officers to exchange experiences and develop gender-focused investment strategies. The training has a budget of USD 350,000, donated by the government of Taiwan.

W-GDP was established by the office of the US President in 2019 to promote the economic empowerment of women through financing, training, mentorship, education and policy advocacy. The initiative has a total allocation of USD 300 million for the fiscal years 2018 through 2020 and reached 12 million women during its first year.

DFC was launched in 2020 to “help businesses expand into emerging markets, foster growth and improve lives in the developing world while reinforcing US foreign policy and national security interests.” The organization has an investment cap of USD 60 billion to deploy in forms such as equity placements, insurance, technical assistance and research. DFC focuses its efforts on low-income and lower-middle-income countries in areas such as “energy, healthcare, critical infrastructure and technology.” Upon its founding, DFC took over the work of the Overseas Private Investment Corporation and the Development Credit Authority of the US Agency for International Development.

By Jessica McLeod, Research Associate

Sources and Additional Resources

DFC press release
https://www.dfc.gov/media/press-releases/w-gdp-dfc-target-additional-6-billion-investment-women

DFC homepage
https://www.dfc.gov/

W-GDP Initiative
https://www.whitehouse.gov/wgdp/

2X Women’s Initiative
https://www.dfc.gov/our-work/2x-womens-initiative

2X Challenge Criteria
https://www.2xchallenge.org/criteria

Concordia announcement, “W-GDP 2X Americas: Investing in the Future of Women”
https://www.concordia.net/leadershipseries/2x-americas-investing-in-the-future-of-women/

Banco del Pais homepage
https://www.banpais.hn

Microsoft homepage
https://www.microsoft.com

Previous MicroCapital article on W-GDP
https://www.microcapital.org/microcapital-brief-usaid-gives-2-5m-for-design-of-kiva-invest-in-women-fund-k-iwf-from-womens-global-development-and-prosperity-w-gdp-initiative/

Previous MicroCapital article on DFC
https://www.microcapital.org/microcapital-brief-us-international-development-finance-corporation-dfc-approves-4b-rapid-response-liquidity-facility-for-microfinance-other-ongoing-projects-impacted-by-covid-1/