WASHINGTON — The U.S. International Development Finance Corporation’s first development strategy, released last week, was developed using historical data and while an important first step, it raises a number of challenges when it comes to implementation, experts said.
The Roadmap for Impact outlines how the DFC will invest $25 billion in the next 5 years, including that 60% of its deals will be in low-income countries, lower-middle-income countries, and fragile states. DFC will prioritize funding for technology and infrastructure, energy, financial inclusion, food security and agriculture, health, and water, sanitation, and hygiene, according to the strategy.
The strategy also identifies a number of cross-cutting themes including financial systems strengthening, women’s economic empowerment, and manufacturing. The strategy was developed based on an analysis of historical deal flow, the current portfolio, and the existing pipeline, in consultation with outside experts.