U.S. International Development Finance Corporation

Description

The U.S. International Development Finance Corporation (DFC) is the successor agency to the Overseas Private Investment Corporation (OPIC) and USAID’s Development Credit Authority (DCA). The DFC partners with the private sector to finance solutions to help meet critical needs in housing, health, energy, infrastructure, water, and more in developing contexts.

Use of Funds

DFC funding provides loans and loan guarantees; technical assistance; feasibility studies; political risk insurance; equity investments; and other support to projects and companies. Investing in both for-profit and non-profit initiatives, the DFC is designed to generate a return that is either reinvested in new projects or returned to the U.S. Treasury.

Justification

• The DFC seeks to conduct 60% of its investments in low- and lower-middle-income countries and in fragile states. In 2020, it exceeded this goal with two-thirds of newly approved projects focused in these areas.
• In F.Y. 2020, in over 106 countries with active projects, the DFC:
  • Committed $4.67 billion in total investments.
  • Committed $2.5 billion in investments towards women’s economic empowerment.
  • Over 66% of projects were in low- and lower- middle income countries and fragile states.
  • Returned $232 million to American taxpayers.
• The DFC has committed to investing at least one-third of new investments on climate-related projects beginning in F.Y. 2023 and to achieving a net-zero emissions investment portfolio by 2040.