Press Release: At U.S.-Africa Business Forum DFC Announces Active Commitments in Africa Top $11 Billion
At the U.S.-Africa Business Forum, U.S. International Development Finance Corporation (DFC) announced active commitments across Africa totaling more than $11 billion. This includes $369 million of new active commitments announced as part of the U.S.-Africa Leaders Summit.
“Investing in Africa is a top priority for DFC,” said DFC CEO Scott Nathan. “Mobilizing more private sector funding for the continent is the best way to sustainably advance development there. A great example is DFC’s new $100 million commitment to Mirova Gigaton Fund to help them bring clean energy to countries throughout Africa. This investment builds on our longstanding relationship with Mirova SunFunder.”
Mirova SunFunder CEO Ryan Levinson joined CEO Nathan at the Forum to commemorate DFC’s $100 million investment in the Mirova Gigaton Fund. This investment will significantly empower the people and strengthen the economies of Africa by financing access to clean energy including for rural populations.
In line with the Biden-Harris Administration’s commitment to expanding and modernizing the U.S. partnership with Africa, DFC invests with the private sector in projects that support economic growth, including supporting energy security, expanding access to high-quality and affordable healthcare, building infrastructure, and bolstering the livelihoods of smallholder farmers. DFC is proud many of its investments align with the agency’s 2X Women’s Initiative to empower women.
At the U.S.-Africa Leaders Summit, DFC highlighted a number of active commitments on the continent, including:
- Building healthcare capacity in Africa: DFC and USAID announced their partnership with the Transform Health Fund, a women-led, innovative blended-finance fund focused on locally-led health supply chain, care delivery, and digital solutions in Africa. DFC and USAID will finalize $10M in equity financing and $1M in catalytic grant funding, respectively.
- Increasing access to clean drinking water across emerging markets: A $10 million equity investment into a potable water fund will provide capital to innovative businesses promoting affordable drinking water access mostly in Africa and South and Southeast Asia. The fund will provide through investments an estimated 20 billion liters of safe drinking water to 30 million people by 2030.
- Financing critical renewable energy development across Africa: An up to $40 million equity investment in Africa Renewable Energy Fund II will dedicate capital towards mid-sized renewable energy projects across sub-Saharan Africa, tripling access to clean electricity.
- Investing in renewable energy solutions in Sub-Saharan Africa: A $40 million direct investment in the Energy Entrepreneurs Growth Fund, including both senior and junior debt positions, will finance companies providing renewable energy solutions for off-grid businesses and households across Sub-Saharan Africa.
- Promoting sustainable agriculture in Democratic Republic of Congo: A $5 million loan portfolio guaranty to Equity Banque Commerciale du Congo SA is supporting micro, small, and medium enterprises in Democratic Republic of Congo, with a focus on agriculture and renewable energy investments, in coordination with USAID and co-guarantor Swedish International Development Cooperation Agency (Sida).
- Supporting solar energy in Malawi: A nearly $25 million direct investment in Golomoti JCM Solar Corporation Limited will finance a 20-megawatt solar power plant and 5MW/10MWh battery energy storage system in the Golomoti district in Malawi.
- Driving growth capital for West African businesses: An up to $25 million equity investment in Uhuru Growth Fund I-A will drive growth capital for consumer-facing sectors such as financial services in lower-income and lower-middle income countries.
- Supporting innovative entrepreneurship in Africa: An up to $15 million equity investment in Norrsken22 Africa Fund, a women-led fund investing in high-impact technology companies across Africa, will support entrepreneurship and technological advancements in finance, medicine, and education.
- Expanding climate-resilient infrastructure in Africa and the Middle East: An up to $80 million direct loan to The Urban Resilience Fund, a blended finance investment fund managed by Meridiam Group, to enable municipalities to identify, develop, and invest in essential infrastructure projects that respond to the critical needs of urban population growth in Africa and the Middle East.
- Supporting smallholder farmers with fertilizer across Sub-Saharan Africa: An up to $20 million loan to One Acre Fund to facilitate the provision of agricultural inputs, mainly fertilizer, and services on credit to approximately 412,000 smallholder farmers (1,648,000 farming household members) including approximately 206,000 female farmers to increase their harvests.
Photo courtesy of Global.finland.fi.