The U.S. International Development Finance Corporation must be reauthorized by October, and lawmakers launched the process in this Congress with a hearing on Tuesday that offered a glimpse of something rare these days on Capitol Hill: bipartisanship.
DFC, which finances private sector development solutions, was founded in 2019 and given a seven-year mandate, which expires in October. The agency, however, may need to slow operations even sooner because it has invested nearly $50 billion of its $60 billion lending cap. Last year, DFC committed more than $12 billion across 181 transactions, with about 70% directed to low-income or lower-middle-income countries.
Reauthorization discussions to date have recommended at least doubling DFC’s lending ability to $120 billion, if not increasing it further.
About the author
Adva Saldinger@AdvaSal
Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.
