World Bank and PFG To Provide $30 million for Fintechs in Emerging Markets
The World Bank, through its global development institution the International Finance Corporation(IFC) and US-Based fund manager Partners for Growth (PFG) have combined efforts to provide debt capital to early-to mid-stage startups in emerging markets.
A statement released by the IFC said that the funds will be focused on fintech, software, e-logistics, health, and life sciences firms in the continent.
“IFC, a member of the World Bank Group, will invest $30 million in a new investment vehicle managed by PFG. The vehicle will be PFG’s first managed account dedicated solely to global emerging markets and IFC’s first investment with a private debt manager focused on venture and growth-stage markets.” The IFC communique elaborated.
Paulo de Bolle, Global Senior Director of IFC’s Financial Institutions Group said that the credit facility will help to lift businesses in emerging markets post Covid-19 pandemic.
“The COVID-19 pandemic has heightened uncertainty and risk aversion in emerging markets, limiting the amount of credit available for small- to mid-sized companies,” de Bolle said. “Our partnership with PFG will play a key role in improving access to finance for deserving high growth technology businesses.”
This partnership is designed to bolster the expansion of digital business which has seen accelerated growth over the last two years.
“Nowhere is the scope for impact greater than in emerging markets as they rebound in the coming years. This partnership will support the growth of small and medium enterprises across the technology sector and allow new financial services providers to thrive.” Said the IFC statement.
“Fintech companies are bringing financial services to vast underbanked populations, enhancing financial inclusion and supporting economic growth, while opening new attractive markets across a broad range of financial services,” said Andrew Kahn, Managing Director and CEO of PFG. “We are thrilled to be working with IFC on this partnership to bring new capital solutions to technology and innovation companies in emerging markets.”
IFC has not specified countries in the emerging markets that are bound to benefit from this credit funding.
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