Press Release: G7 Development Finance Institutions Create Platform to Boost Investment in Fragile States
U.S. International Development Finance Corporation (DFC) and partner development finance institutions funded by the G7 nations, including the UK’s development finance institution CDC Group, have announced the launch of a new platform designed to boost investment in fragile and conflict-affected states in Africa.
The Africa Resilience Investment Accelerator (ARIA) aims to unlock investment in fragile states through collective influence and by pooling expertise to overcome the challenges of providing capital in these countries. Participation in ARIA advances DFC’s goal to prioritize 60 percent of projects in low-income and lower-middle income countries, and in fragile states, as identified in the agency’s development strategy, the Roadmap for Impact. It also advances the U.S. Strategy to Prevent Conflict and Promote Stability, which seeks to break the costly cycle of fragility and promote peaceful, self-reliant nations that become U.S. economic and security partners, implementing the Global Fragility Act of 2019.
Historically, DFIs have tried to originate investments in fragile states with mixed results. ARIA aims to engage proactively in such markets in a way that would improve investment-readiness – both a country’s readiness to benefit from DFI investment and DFIs’ abilities to invest in these economies.
Photo courtesy of kcelsner.
Source: U.S. International Development Finance Corporation (link opens in a new window)