There is growing international recognition that the current shortfall in investment financing is a major threat to Africa's future. New investors, particularly private-sector debt funds, are needed to close the gap and realize the continent's enormous potential.
PARIS – Toward the end of 2018, the United States merged existing development agencies into the new US International Development Finance Corporation (IDFC). With a financing capacity of $60 billion in equity and debt – more than twice that of its predecessors – the new agency, which is scheduled to become operational by the end of this year, represents a major step in US development policy, particularly regarding Africa. It may also reflect rising global awareness that a huge investment-financing gap poses an existential threat to Africa’s future.
PARIS – Toward the end of 2018, the United States merged existing development agencies into the new US International Development Finance Corporation (IDFC). With a financing capacity of $60 billion in equity and debt – more than twice that of its predecessors – the new agency, which is scheduled to become operational by the end of this year, represents a major step in US development policy, particularly regarding Africa. It may also reflect rising global awareness that a huge investment-financing gap poses an existential threat to Africa’s future.