Emerging and Growth Markets | January 27, 2021

DFC guarantees Cordaid to spur lending in Africa’s Sahel

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, January 27 – The U.S. International Development Finance Corp. approved a $14.8 million loan portfolio guarantee for Cordaid Investment Management. The commitment is aimed to get financing flowing to microfinance institutions and small and medium-sized businesses in Burkina Faso, Guinea, Mali, and Sierra Leone.

USAID offered a $2 million grant as first-loss capital.

Cortaid is looking to lend $37 million to 58 entities. 

Separately, the U.K.’s development finance institution, CDC Group, pledged to invest $1 billion in African businesses in 2021 to help small businesses and entrepreneurs rebound from COVID.