New US Initiative: Partial Credit Guarantees to Boost HIV Fight in Ethiopia

The United States has launched an initiative that seeks to increase financing for Ethiopian health facilities catering to people living with HIV/AIDS.

The initiative is a partnership between USAID’s Development Credit Authority and the Office of the U.S. Global AIDS Coordinator under the State Department. It will use $2.3 million of the department’s AIDS funding to back partial credit guarantees to local banks, which will in turn spur $13.5 million in capital for health care providers in Ethiopia, according to USAID.

“This agreement is a historic initiative and an outstanding example of U.S. Government cooperation that will produce meaningful results in the fight against HIV/AIDS,” USAID administrator Rajiv Shah said in a July 27 news release. “By validating the strength of borrowers in the health sector, private financial institutions can make smart investments that will ultimately save more lives while sustaining country-led development and innovation.”

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About the author

  • Eliza Villarino

    Eliza Villarino currently manages one of today’s leading publications on humanitarian aid, global health and international development, the weekly GDB. At Devex, she has helped grow a global newsroom, with talented journalists from major development hubs such as Washington, D.C, London and Brussels. She regularly writes about innovations in global development.