DFC's Roadmap for Impact

dfc.gov

DFC’s

Roadmap for

Impact

DFC's Inaugural

Development Strategy

January 2020 – December 2025

DFC'S ROADMAP FOR IMPACT

TABLE OF CONTENTS

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER AND CHIEF DEVELOPMENT OFFICER ......................................

ACKNOWLEDGMENTS ..................................................................................................................................................

PREAMBLE .....................................................................................................................................................................

ACRONYMS.....................................................................................................................................................................

EXECUTIVE SUMMARY ..................................................................................................................................................

INTRODUCTION ............................................................................................................................................................

PURPOSE ......................................................................................................................................................................

METHODOLOGY ..........................................................................................................................................................

DFC OVERVIEW .............................................................................................................................................................

STRATEGIC OBJECTIVES ..............................................................................................................................................

PRODUCTS AND ELIGIBILITY ......................................................................................................................................

COVID-19 ......................................................................................................................................................................

LESS DEVELOPED COUNTRY FOCUS .........................................................................................................................

FRAGILE STATES APPROACH ......................................................................................................................................

IMPACT QUOTIENT (IQ) ..............................................................................................................................................

GUIDING PRINCIPLES ..................................................................................................................................................

DEVELOPMENT THEMES .............................................................................................................................................

INNOVATION ACROSS THE DEVELOPMENT FINANCE LIFECYCLE ..........................................................................

WOMEN’S ECONOMIC EMPOWERMENT ...................................................................................................................

FINANCIAL SYSTEMS STRENGTHENING ....................................................................................................................

SUSTAINABLE JOB CREATION .....................................................................................................................................

PROTECTING WORKERS ..............................................................................................................................................

BOLSTERING MANUFACTURING AND GLOBAL SUPPLY CHAINS ...........................................................................

EMPOWERING U.S AND LOCAL BUSINESSES ...........................................................................................................

DEVELOPMENT SECTORS ...........................................................................................................................................

TECHNOLOGY AND INFRASTRUCTURE .....................................................................................................................

ENERGY .........................................................................................................................................................................

FOOD SECURITY AND AGRICULTURE ........................................................................................................................

HEALTH .........................................................................................................................................................................

WATER, SANITATION, AND HYGIENE .........................................................................................................................

CAPABILITIES AND RESOURCES .................................................................................................................................

DFC'S ROADMAP FOR IMPACT

INTERNAL COLLABORATION ......................................................................................................................................

INTERAGENCY COORDINATION .................................................................................................................................

BUSINESS DEVELOPMENT ..........................................................................................................................................

FINANCIAL INNOVATION ............................................................................................................................................

MONITORING AND EVALUATION ..............................................................................................................................

CONCLUSION ...............................................................................................................................................................

APPENDIX A: FRAGILE STATES APPROACH ...............................................................................................................

APPENDIX B: DEVELOPMENT FINANCE COORDINATION GROUP MEMBERS ......................................................

APPENDIX C: DEVELOPMENT ADVISORY COUNCIL MEMBERS ..............................................................................

ENDNOTES ...................................................................................................................................................................

DFC'S ROADMAP FOR IMPACT

MESSAGE FROM THE CHIEF EXECUTIVE

OFFICER AND CHIEF DEVELOPMENT OFFICER

Adam Boehler

Chief Executive Ocer

Andrew Herscowitz

Chief Development Ocer

Around the world, countries face challenges that disrupt economic and development growth. These challenges

require innovative and strong nance tools to facilitate market-based private-sector development and inclusive

economic growth that complement the United States’ development objectives and foreign policy interests.

The Better Utilization of Investments Leading to Development Act of 2018 (BUILD Act) launched a new era for

development nance to meet these challenges by establishing America’s new development nance bank, the

U.S. International Development Finance Corporation (DFC).

DFC continues to partner with the private sector to nance solutions to the critical development challenges

facing the world today, including the COVID-19 pandemic. As we respond to the pandemic, we remain

committed to supporting projects that have a signicant development impact in the world’s poorest and most

fragile countries, provide benets to underserved populations, and advance the foreign policy and economic

interests of the American people.

As America’s development nance institution, it is critical that we support countries that struggle to attract

investments or where our support can serve as a stabilizing force. We are proud that over 60 percent of projects

approved since January 2020 are focused in less developed countries and fragile states. Through our private

sector partners, we support sectors including energy; education; healthcare; agriculture; nancial services;

technology; critical infrastructure; low-income housing, and water, sanitation, and hygiene. We provide nancing

to women entrepreneurs and underserved populations who would struggle to get access to capital.

As we move forward, through the DFC’s Health and Prosperity initiative, we are investing up to $2 billion in

private sector projects to help less developed countries address impacts of the COVID-19 pandemic. We are

investing up to $900 million to support early social enterprises (i.e., impact-driven companies) through our

Portfolio for Impact and Innovation; empowering women through our $6 billion 2X Women’s Initiative; and

investing more than $1 billion to advance connectivity in Africa through our Connect Africa Initiative.

With our new nancial tools, we are better positioned to support our partners and private-sector clients, reduce

barriers to private investment, and increase support to private sector while increasing our operational eciency.

For example, our new equity nancing capabilities and technical development grants provide us opportunities to

support more innovative projects and deliver our partners early-stage capital to help de-risk investments.

And we are only getting started. DFC can support both U.S. investors and local investors around the world,

which will further catalyze locally led development in countries. As we expand our client base, we will continue

to collaborate with our U.S. Government counterparts and like-minded partners to ensure that our investments

complement each other and that we leverage opportunities to better collaborate. We are committed to

providing innovative solutions to help support resilient economies–always remembering that there is a person

behind each investment.

DFC'S ROADMAP FOR IMPACT

ACKNOWLEDGMENTS

The U.S. International Development Finance

Corporation (DFC)’s Roadmap for Impact emerged

from the initial work of DFC’s COVID Task Force

and extensive collaboration between the DFC’s

Chief Development Ocer’s oce and other DFC

departments and oces. DFC sought input from

over 100 external stakeholders, including other

U.S. Government (USG) agencies, foundations,

development nance institutions, clients,

think-tanks, non-governmental organizations,

congressional sta, and the private sector to

ensure that there was broad-based feedback and

buy-in for DFC’s approach.

The Roadmap for Impact would not be possible

without the specic guidance and input that

non-USG stakeholders provided. DFC would like

to thank the following individuals who provided

insightful comments and feedback:

Akinwumi Adesina, President of the African

Development Bank; Anthony Carroll of

Manchester Trading and Johns Hopkins

University; Clemence Landers of the Center

for Global Development; Dan Runde, Agnes

Dasewicz, and Romina Bandura of Center for

Strategic and International Studies; Dana Barsky

of Credit Suisse International; Daniel Hulls

of AgDevCo; David Turk of the International

Energy Agency; Elizabeth L. Littleeld and Linda

Thomas-Greeneld of the Albright Stonebridge

Group; Florizelle Liser, President and CEO

of the Corporate Council on Africa; George

Ingram of the Brookings Institution; Jenn Pryce

of Calvert Impact Capital; Julie Fawn Earne and

Simon Andrews of the International Finance

Corporation; Mark Davis of Norfund; Mima

Nedelcovych of Africa Global; Mimi Alemayehou

of MasterCard; Nick O’Donohoe, CEO of CDC

Group; Peter Sullivan of Citibank; President Luis

Alberto Moreno and Alessandro Maoli of the

Inter-American Development Bank; Rémy Rioux,

CEO of Agence Française de Développement,

AFD; Sam Parker of the Shell Foundation; Sasanka

Thilakasiri of Oxfam; Todd Moss and Katie Auth

of the Energy for Growth Hub; Tom Hart and

Marc Friend of the ONE Campaign; Tony Blair and

Jonathan Said of the Tony Blair Institute for Global

Change; and Vera Songwe, Under-Secretary-

General of the United Nations (UN) and Executive

Secretary of the UN. Economic Commission for

Africa.

Furthermore, DFC is grateful for the input and

guidance provided by the inaugural members of

DFC’s Development Advisory Council:

Bashar Masri, Chairman of the Board of Massar

International; Damilola Ogunbiyi, CEO and Special

Representative of the United Nations (UN) Secretary-

General for Sustainable Energy for All and Co-Chair

of UN-Energy; Edward R. Royce, Policy Director at

Brownstein Hyatt Farber Schreck, LLP; Ellen Johnson

Sirleaf, Former President of Liberia; Frederick

Kempe, President and CEO of the Atlantic Council;

Liz Schrayer, President and CEO of the U.S. Global

Leadership Coalition; Michelle Nunn, President

and CEO of CARE USA; Paul Weisenfeld, Executive

Vice President for International Development at RTI

International; and Robert Mosbacher, Jr., Chairman of

Mosbacher Energy Company.

Special thanks to DFC’s Chief Development Ocer’s

team, including Roxanne Ryan Alozie, Amana Bawa,

Lara Barranco, Merryl Burpoe, Nick Van Hollen,

and Alex Kearns, who wrote and edited multiple

drafts of this Roadmap and who, like others, remain

passionate about DFC’s development mandate!

DFC'S ROADMAP FOR IMPACT

Development nance is neither simple nor easy. The

countries that most desperately need development

nance (low income and fragile countries) are

the same countries where it is most dicult to

attract private capital because of high risk, limited

capacity, weak governance, and instability. The U.S.

International Development Finance Corporation

(DFC) can oer competitive interest rates and long

tenors, and we can mitigate the risks associated with

certain projects by partnering with the U.S. Agency

for International Development (USAID) and other

U.S. Government agencies, public institutions, or

private foundations, who can provide additional grant

funding. But we generally cannot and should not

invest in or nance projects that we are fairly certain

are not economically viable over the long term or

those projects that crowd out private investment.

There may be circumstances where DFC supports

a project that may have an expected negative

nancial rate of return, but we would expect a

positive developmental or political rate of return. For

example, if DFC guarantees a portfolio of loans for

hundreds of borrowers, we can expect that at least

some of those loans will default, but many others

borrowers will benet.

DFC continues to work with the Overseas Private

Investment Corporation’s (OPIC) and USAID’s

Development Credit Authority’s (DCA) existing clients

who have been doing deals in emerging markets

for many years. These clients understand risk and

operate ethically in challenging investment climates.

With our inaugural Roadmap for Impact, DFC is

re-committed to making investments in places and

sectors that need development capital are and that

are, in some cases, riskier. We are committed to

going outside of our comfort zone, while also making

sure that we are being responsible to the

U.S. taxpayer.

The metrics in this Roadmap for Impact are

ambitious, and, therefore aspirational. We may

achieve them, and we may not. We will work hard to

try to identify investments that will advance these

metrics. We will try to sta up with people who have

expertise in new sectors, and we will work with trade

associations, chambers of commerce, civil society

organizations, U.S. embassies overseas, and other

partners to identify new clients and investments.

DFC will identify local partners that can help drive

sustainable development and that meet our social,

environmental, and governance standards – local

companies that could become trade and investment

partners of U.S. companies.

PREAMBLE

That’s development: learning

from our successes and our

failures and trying our best

to tackle issues from as many

dierent angles as possible

until we nd approaches that

work.

DFC was fortunate to inherit an experienced,

committed, and talented team of professionals from

both OPIC and USAID – people who have seen and

tried to do every type of investment imaginable over

the last few decades – sometimes with success, and

sometimes without success. That’s development:

learning from our successes and our failures and

trying our best to tackle issues from as many dierent

angles as possible until we nd approaches that

work.

We have taken a broad approach, covering sectors

and themes that those in the development and

nance communities agree can be addressed and

need to be addressed. We expect this Roadmap

for Impact to be a living document – one that we

can change as we learn from our experiences. We

all have learned from the COVID-19 pandemic that

we must be exible and that priorities change. As a

development institution, the DFC team is committed

to adjusting and moving with that change.

DFC'S ROADMAP FOR IMPACT

ACRONYMS

BUILD Act

CEO

CDO

COVID-19

DCA

DFC

DFI

EPA

ESPP

GDP

HIC

HIPSO

ICT

IFC

IFI

IPP

LIC

LMIC

LPG

MCC

M&E

MSME

NGO

NSS

OPIC

PEPFAR

PMI

PPE

PPP

SMEs

T&D

UMIC

USAID

USG

WASH

Better Utilization of Investments Leading to Development Act of 2018

Chief Executive Ocer

Chief Development Ocer

Coronavirus Disease 2019

USAID’s Development Credit Authority

International Development Finance Corporation

Development nance institution

U.S. Environmental Protection Agency

DFC Environmental and Social Policy and Procedures

Gross domestic product

High-income country

Harmonized Indicators

Information and communications technology

International Finance Corporation

International nancial institution

Independent Power Producer

Impact Quotient

Low-income country

Lower middle-income country

Loan portfolio guarantee

Millennium Challenge Corporation

Monitoring and evaluation

Micro, small and medium enterprises

Non-governmental organization

U.S. National Security Strategy

Overseas Private Investment Corporation

President’s Emergency Plan for AIDS Relief

President’s Malaria Initiative

Personal protective equipment

Public-Private Partnership

Small and medium-sized enterprises

Transmission and distribution infrastructure

Upper middle-income country

U.S. Agency for International Development

U.S. Government

Water, Sanitation, and Hygiene

DFC'S ROADMAP FOR IMPACT

EXECUTIVE SUMMARY

Through the U.S. International Development

Finance Corporation (DFC), the U.S. Government

(USG) accelerates the ow of private capital to less

developed countries by supporting private sector

investments that cannot obtain nancing from other

sources. This support is essential to advancing key

sectors, such as infrastructure, agriculture, and

health, which improve the quality of life for millions

and lay the groundwork for modern, inclusive, and

sustainable economies. Equipped with new nancial

tools, DFC has the exibility to catalyze private capital

to spur development, advance U.S. foreign policy, and

generate returns for the American taxpayer—a triple

impact.

DFC’s Roadmap for Impact (Roadmap) takes into

account global development needs to establish

portfolio-wide development priorities. The Roadmap

identies opportunities to increase private

investment in low-income countries (LIC) and lower

middle-income countries (LMIC)—targeting 60

percent of total portfolio projects in LICs, LMICs

or fragile states. It also recognizes the importance

of supporting projects that are signicantly

developmental or that target the most vulnerable

populations in upper middle-income countries

(UMICs). In addition, the Roadmap denes priority

cross-cutting development themes and sectors, and

it establishes investment goals and development

metrics in order to focus DFC’s investment activities

and measure our progress.

DFC will catalyze $75 billion

to maximize development

impact while creating

strategic and sustainable

growth.

The Roadmap outlines capabilities and resources that

are required to achieve these development goals,

with an emphasis on enhanced coordination within

DFC and across USG initiatives, departments and

agencies, development nance institutions (DFIs),

international nancial institutions (IFIs), and other

members of the development community. It also

emphasizes the importance of transparency and

enhanced social and environmental standards in the

design and sustainable execution of DFC-supported

projects in order to demonstrate that the U.S.-led

model of development advances the best interests of

Americans, host countries, and the planet whenever

we invest.

The Roadmap does not reect an exhaustive list of

the sectors where DFC invests; rather, it focuses

on sectors where DFC investments and technical

assistance can have the greatest, measurable

development impact over the next ve years.

Working closely with newly created U.S. Embassy deal

teams, particularly with the Departments of State’s

and Commerce’s DC Central Deal Team, as well as

with DFC liaisons at U.S. Agency for International

Development (USAID) missions worldwide, DFC can

expand its client base and broaden the markets it

serves. It will not be easy; and it will require additional

resources, private capital to invest alongside, changes

to processes, and patience. But DFC is committed to

prioritizing the most highly developmental projects in

the most underserved communities worldwide.

DFC'S ROADMAP FOR IMPACT

Cross-Cutting

Development Themes

DFC will prioritize projects to advance the following

seven cross-cutting developmental themes:

Innovation Across the Development Finance

Lifecycle. DFC will strive to support transformative

technologies and nancial practices that positively

impact lives while creating economic opportunity

abroad.

Financial Systems Strengthening. DFC will use

the transactions it supports to improve the nancing

opportunities and related investment conditions in

developing countries and key sectors.

Protecting Workers. DFC will encourage its private-

sector clients to adopt enhanced worker protections

and benets appropriate for the countries they

work in.

Sustainable Job Creation. DFC will support

transactions that lead to direct and indirect job

creation.

Women’s Economic Empowerment. DFC will

provide nancing to women entrepreneurs and

women-owned small businesses and support

projects that benet women by creating an enabling

environment that promotes inclusion.

Bolstering Manufacturing and Global Supply

Chains. DFC will support the diversication of critical

supply chains by investing in sectors to counter

shortages of essential goods, disruptions in sourcing

raw materials, and the inability of industries to meet

consumer demands.

Empowering U.S. and Local Businesses. DFC aims

to promote self-reliance and sustainability within

countries, while increasing opportunities for U.S.

company partnerships.

Priority Development Sectors

DFC will prioritize the following Development

Sectors that align with U.S. development and foreign

policy, DFC’s mission and nancing capabilities, and

global eorts to address the short- and long-term

socioeconomic impacts of unprecedented shocks,

such as the COVID-19 pandemic:

Technology and Infrastructure. DFC will

invest in technology, including information and

communications technology (ICT) and infrastructure

projects to spur economic growth through increased

trade and regional connectivity (e.g., roads bridges,

and ports), as well as infrastructure projects that

provide people with basic needs (e.g., housing,

hospitals, etc.).

Energy. DFC will help address growing energy

demands in developing countries, provide

competitive, sustainable and reliable electricity and

sources of energy, expand electricity access, and

promote energy security and diversication.

Financial Inclusion. DFC will provide sustainable

nancial services and credit to women, small

businesses, and other underserved groups to

increase economic participation and prosperity within

communities.

Food Security and Agriculture. DFC will invest in

projects that promote nutrition, food security and

robust agriculture value chains by linking smallholder

farmers to markets and innovations, supporting

agro-processing and storage companies, advancing

industrialization, and growing local small and medium

enterprises that form the backbone of a vibrant

agriculture sector in lower income countries.

Health. DFC will tackle health challenges through

its support for private sector investment including

strengthening healthcare supply chains, expanding

access to healthcare professionals, building critical

DFC'S ROADMAP FOR IMPACT

Technology and Infrastructure

Commit to $5 billion in technology and critical

infrastructure.

Expand logistics, warehousing and

transportation infrastructure to increase

regional and global connectivity through 10

major infrastructure projects in LICs, LMICs,

and fragile states.

Increase internet access for 3 million

people.

Energy

Commit to $10 billion energy sector

investments.

Increase country and regional energy security

through diversied domestic power generation

in 10 countries and at least two cross-

border investments.

Increase electricity access for at least 10

million people by 2025.

By 2025, DFC aims to invest over $25 billion and mobilize an additional

$50 billion of capital across priority Development Sectors to reach

30 million people and nance at least 300 projects in less developed

countries, deploy new technologies, and expand DFC’s client base.

DFC aims to achieve development goals that cut-across DFC’s full portfolio:

DFC aims to achieve the following aspirational investment targets (commitments)

and development goals (projected outputs) over the next ve years:

• Conduct at least 60% of its projects in

LICs, LMICs, and fragile states.

• Reach 12 million

women and 6

million marginalized individuals.

• Elevate innovation and technology

across 50% of DFC’s portfolio

• Support the creation of 100,000 new

local jobs.

• Expand and diversify DFC’s client base

by adding 15 new clients each year

and targeting 30% of all clients to be

local or regionally based.

care facilities, and providing lifesaving treatments. It

will also support the extension of services, vaccines,

diagnostics, therapeutics and other products related

to the COVID-19 response.

Water, Sanitation, and Hygiene. DFC will seek,

through the private sector, to expand access to

clean drinking water, improve water and sanitation

services, promote the adoption of new technologies

and introduce water management practices to

help countries cope with health hazards, expand

economic opportunities, and address rising

pressures on water resources.

DFC'S ROADMAP FOR IMPACT

Financial Inclusion

Commit to catalyze $6 billion directly and

indirectly in 2X qualifying transactions.

Commit to $100 million

in projects that

include innovations in financial technology.

Bring 100 companies into the formal

sector.

Health

Commit to $3 billion and catalyze $6 billion

more from the private sector in health.

Increase access to health care by supporting

10 new healthcare facilities in LICs, LMICs, and

underserved communities in UMICs.

Provide healthcare services to at least 2

million people.

Food Security & Agriculture

Commit $500 million over 50 investments.

Commit 75% of projects in LICs, LMICs, and

fragile states.

Support at least 1 million smallholder

farmers.

Water, Sanitation, & Hygiene

Commit to at least $250 million in WASH

projects globally.

Commit to at least 25 WASH projects in LICs

and LMICs.

Increase access to potable water for at

least 1 million customers.

Achieving the Roadmap’s investment targets and

development goals will require DFC to build or

acquire capabilities and resources in several areas

including:

• Internal Collaboration. DFC will improve

internal business processes to drive new

deal ow in priority sectors and enhance

development-related coordination.

• Interagency Coordination. DFC will facilitate a

more holistic approach to the USG’s development

activities, from policy and planning initiatives

to project development and monitoring and

evaluation.

• Business Development. DFC will assume

a more active role in identifying and building

relationships with the private sector and other

external partners that are engaged in DFC’s

priority sectors.

• Financial Innovation. DFC will collaborate

with interagency partners to design transaction

structures and blended nance tools that help

all parties advance their common development

goals.

• Monitoring and Evaluation. DFC will launch

and operationalize a more advanced monitoring,

evaluation, and learning strategy, leveraging

technology and systems to fully integrate with

the Impact Quotient tool to provide DFC a

holistic, ex-ante and ex-post assessment of the

Agency’s development performance for the entire

portfolio.

Capabilities and Resources

DFC'S ROADMAP FOR IMPACT

Conclusion

A key goal of USG international development

eorts is to help developing countries achieve

self-sustaining economic growth that can alleviate

poverty. DFC works to ensure projects produce

positive developmental impacts, apply best practices

with respect to environmental and social safeguards,

and respect human rights, including worker rights.

Fostering an environment that is conducive to private

sector development, job creation, and sustainable

and inclusive economic growth is essential to the

achievement of this goal. Furthermore, the increased

portfolio authorization and addition of more modern

investment tools equips DFC to mobilize substantially

more capital to advance development and grow

economies. However, for DFC to achieve the goals

under this Roadmap, it will require the resources

necessary to pursue transactions in the most

challenging investment climates, which are

inherently risky and expensive to nance. DFC will

track how much capital it is mobilizing across its

portfolio. By utilizing its new tools and exibilities

to bridge nancing gaps and increase the ow of

private capital to emerging markets, especially in

less developed and fragile countries, DFC can play

a central role in the implementation of the USG’s

development and foreign policy objectives. DFC will

work to operationalize the Roadmap by embedding

its priorities within its internal systems and processes,

collaborating with USG and external partners to

achieve shared development goals, and seeking out

the capabilities and resources required to maximize

DFC’s global development impact.

Do you have comments or questions

on DFC’s Roadmap for Impact? Contact:

[email protected]

DFC'S ROADMAP FOR IMPACT

The Better Utilization of Investments Leading to

Development (BUILD) Act of 2018 consolidated,

modernized, and reformed the USG’s development

nance capabilities – Overseas Private Investment

Corporation (OPIC) and the Development Credit

Authority (DCA) – into a new independent agency:

the United States International Development Finance

Corporation (DFC).

DFC is America’s development bank. DFC uses

development nance tools, such as loans,

guarantees, investment funds, technical assistance,

equity investments, and political-risk insurance,

to facilitate private-sector investment in emerging

markets, further U.S. foreign policy interests, and

generate positive developmental impacts. DFC

support also unlocks greater economic freedom and

opportunity for women, micro-, small-and medium-

sized enterprises, and other populations that do not

have sucient access to commercial nancing. DFC

investments adhere to environmental, social, and

governance standards and underscore the U.S. value

proposition overseas.

Through the BUILD Act, the Administration and

Congress created new tools, mechanisms, and

operational exibilities that empower DFC to

reach a broader set of projects and to support

DFC’s development mission, including the Chief

Development Ocer and the Development Advisory

Council. In addition, DFC recently launched its

Impact Quotient (IQ) methodology to measure

the development impact of its projects. Through

the IQ, transactions are evaluated against specic

developmental criteria underpinning the new tool

and evaluated based on indicators and metrics that

can be categorized into three overarching themes or

“pillars”: economic growth, inclusion, and innovation.

The IQ methodology creates a framework for DFC to

consider projects that align with the Roadmap.

With greater ability to support projects and DFC’s

mandate to ensure it invests in projects that advance

U.S. developmental goals, coordination across the

USG’s development agencies is essential. By working

closely with other USG agencies, in addition to

development nance institutions (DFIs), international

nancial institutions (IFIs), U.S. and host country

private companies, foundations, non-governmental

organizations (NGOs), and other development

partners, DFC can drive greater development impact

and increase self-reliance in the developing world.

DFC support also unlocks

greater economic freedom

and opportunity for women,

micro-, small-and medium-

sized enterprises, and other

populations that do not

have sucient access to

commercial nancing.

INTRODUCTION

DFC'S ROADMAP FOR IMPACT

PURPOSE

METHODOLOGY

While the BUILD Act requires DFC to prioritize

investments in less developed countries, as well

as developmental projects in UMICs, it does

not prescribe an approach to achieving global

development impact on a sectoral basis. DFC aims

to advance economic and human development

indicators through a more targeted, sustainable

and transparent investment approach. The purpose

of this Roadmap is to focus DFC’s investments and

technical assistance on areas where DFC can have

the greatest development impact and to establish

metrics to help assess progress.

The Roadmap will assist DFC and its partners by:

• Dening guiding principles for DFC based on

the DFC’s strategic objectives;

• Focusing DFC’s development eorts on key

sectors and themes to maximize impact;

• Identifying development goals to assess and

demonstrate progress; and

• Identifying capabilities and resources required

to achieve these goals, with an emphasis on

coordination across the USG, DFIs, IFIs, and

members of the development community.

The Roadmap for Impact identies six priority

Development Sectors and seven cross-cutting

development themes that align with DFC’s mission

and nancing capabilities. The selection of sectoral

focus areas in the Roadmap for Impact was based on

the following criteria:

• Alignment to USG development and foreign

policy objectives;

• Opportunity to strengthen response,

mitigation, and recovery from market

disruptions or nancial shocks;

• The ability of projects in the sector to drive

development impact across one or more of

the Impact Quotient Development Pillars;

• The potential for private investment in the

sector; and

• DFC’s capacity to address barriers to private

investment in the sector.

The Roadmap’s priority Development Sectors are not

meant to be exhaustive of the sectors in which DFC

operates nor preclude DFC from supporting projects

in other areas. For example, DFC will continue to

support projects in the education sector. The sectors

identified in the Roadmap are designed to help DFC

more proactively seek out and assess projects in

areas that are highly likely to result in positive,

measurable development outcomes. In practice,

additional consideration will be given to the country-

level development context, such as the project’s

contribution to the strengthening of the enabling

environment and rule of law (e.g., if a project leads a

country to adopt international standards on dispute

resolution).

DFC will explore opportunities to collaborate with

other public sector partners, sovereign wealth funds,

and pension funds to leverage greater and more

sustainable investments in challenging investment

climates. DFC conducts detailed evaluations on a

project-by-project basis with project bankability and

other investment criteria

DFC'S ROADMAP FOR IMPACT

being critical to ensuring that a given transaction

can be successful in order to have the intended

development impact. DFC also remains committed

to continuing to nd ways to increase eciency in its

decision making processes so that the U.S. and other

clients are not put at a competitive disadvantage to

others.

There are many ways to measure development

progress, including investment amounts, the number

and type of beneciaries, or other characteristics

that help quantify the impact of an investment within

a specic context. DFC’s IQ tool considers these

types of performance indicators on a project-by-

project basis but does not directly inform the DFC’s

investment strategy or deal sourcing. Furthermore,

DFC’s metrics are aligned with Harmonized Indicators

and/or IRIS+ measuring systems and DFC follows the

International Finance Corporation’s (IFC) performance

standards. The Roadmap aims to embed these

measures into DFC’s operations and evaluate

development progress on a portfolio-wide basis.

The Roadmap identies three types of performance

metrics, which are designed to encourage DFC’s deal

teams to pursue strategic transactions and enable

DFC to track and measure its impact in each priority

sector from January 1, 2020 to December 31, 2025.

DFC will provide analysis of the metrics in annual

reports. The metrics are dened as the following:

• Investment Targets: The commitment

amount and number of projects committed

that DFC aims

to support.

• Development Goals: The projected

development output(s) that DFC aims to

achieve.

• Aspirational Milestones: Internal goals that

are highly developmental in nature, but that

may not be readily measurable or applicable

on a portfolio-wide basis.

DFC OVERVIEW

DFC provides the United States with the exibility to

introduce new and innovative nancial products to

better bring private capital to the developing world.

DFC investments drive economic growth, create

stability, and improve livelihoods. DFC makes America

a stronger and more competitive leader on the global

development stage, with a greater ability to partner

with allies on transformative projects and provides

nancially sound alternatives to malign state-directed

initiatives that can leave developing countries worse

o. DFC’s work takes a Triple Aim approach, focusing

on achieving global development impact, advancing

U.S. foreign policy, and generating returns for

American taxpayers.

DFC’s Triple Aim Approach

DFC'S ROADMAP FOR IMPACT

STRATEGIC OBJECTIVES

Based on the BUILD Act’s guidelines, DFC has three

overarching strategic objectives, which factor in USG

foreign policy and development priorities:

• Promote inclusive economic growth and

stability with a focus on lower-income

countries, countries recovering from conict

or terrorist violence, and those struggling to

stem migration ows;

• Counter predatory state-directed investment

and other malign inuence, preserve partner-

country sovereignty, and foster self-

reliance; and

• Support countries undergoing market

transformation and democratic reform.

Across the Roadmap’s priority Development Sectors

and Themes, the Roadmap integrates and advances

both DFC and USG initiatives.

Technology & Infrastructure Energy Financial Inclusion

• Connect Africa

• Prosper Africa

• Indo-Pac Strategy

• Three Seas Initiative

• Mekong Fund

• Three Seas Initiative

• Power Africa

• Asia Edge

• America Crece

• European Energy

Security &

Diversication Act

• 2X Women’s Initiative

• DFC’s Portfolio for Impact

and Innovation Initiative

Food Security & Agriculture Health Water, Sanitation, & Hygiene

• 2X, Northern Triangle

• Colombia Eradicate

Coca

• Feed the Future

• Food for Progress

• DFC Health &

Prosperity Initiative

• Global Health Security

Agenda

• PEPFAR

• President’s Malaria

Initiative

• 2X Women’s Initiative

• Ocean Plastics & Waste

Management

• Health and Prosperity

• U.S. Global Water Strategy

Initiatives that Apply Across Sectors

National Security Strategy; 2X Initiative; Prosper Africa; DFC Fragile States Approach; Global Fragility

Act of 2019; and the range of DFC and USG Region and Country-focused Initiatives.

DFC'S ROADMAP FOR IMPACT

PRODUCTS AND ELIGIBILITY

The BUILD Act nancial products and project

eligibility criteria provides a modern toolkit that

enables broader collaboration with the private sector

and development community. In addition to debt

nancing and political risk insurance products, DFC is

authorized to make equity investments and provide

technical assistance to its partners. Furthermore,

the BUILD Act also increased DFC’s ability to

provide local currency loans, rst loss guarantees,

and small grants for feasibility studies to support

development initiatives. DFC is able to support

projects that involve non-U.S. investors when they

meet the Agency’s eligibility criteria, which includes

positive developmental impacts and adherence to

DFC’s investment standards, as detailed in DFC’s

Environmental and Social Policy and Procedures

DFC's Product Oering

Debt Financing Political Risk Equity Financing Technical Development

Direct loans and

guaranties of up to

$1 billion for tenors

as long as 25 years,

with specic programs

targeting small

and medium U.S.

businesses.

Coverage of up to $1

billion against losses due

to currency inconvertibility,

government interference,

and political violence

including terrorism. DFC

also oers reinsurance

to increase underwriting

capacity.

Direct equity

and support

for investment

funds.

Feasibility studies and

technical assistance

accelerate project

identication and

preparation to better

attract and support

private investment in

development outcomes.

DFC’s First Equity Investments

The USG has multiple tools for helping developing countries become more self-reliant. When

Congress created DFC, it provided DFC with the authority to make equity investments. Among the

conditions to make equity investments are the following:

• The investment should address a market failure;

• The investment would not happen or would be delayed without DFC support;

• The investment should help transform local conditions to promote the development of

markets;

DFC'S ROADMAP FOR IMPACT

• The investment should include commercial partners; and

• The investment should promote “signicant developmental impact” and be designed in a

way that is commercially sustainable.

The direct development impacts of equity investments in funds include strengthening nancial

markets and job creation in the formal sector. DFC moved forward with great caution with respect

to its rst round of equity investments. During pre-marketing, DFC engaged in conversations with

over 200 prospective applicants and ultimately screened 38 applications for further review, of

which ve funds and one direct investment proceeded to Board for approval. These investments

oered the opportunity for DFC to test dierent models, dierent markets, and dierent types of

partners. DFC consulted with other DFIs regarding their use of equity, and as is required by DFC

statute, worked hand-in-hand throughout the selection process with our competitively selected

private equity consultants. As DFC starts to ramp up its equity investments, it will have to strike a

delicate balance between maximizing private investment (i.e., as a minority investor) and being an

active investor that help inuence maximum development impact.

COVID-19

The COVID-19 pandemic has reinforced the

importance of eective international coordination

and will aect global development needs for years

to come. DFC has already taken signicant steps to

address the impact of the pandemic on its existing

investments and development agenda, establishing a

$4 billion COVID-19 Rapid Response Liquidity Facility

to fund working capital needs and essential activities

across DFC’s portfolio and launching a new Health

and Prosperity Initiative (designed and launched in

advance of the overarching Roadmap for Impact),

which includes a call for proposals from private

sector entities seeking DFC support for health-related

investments in developing countries. Through the

initiative, DFC seeks to commit up to $2 billion across

eligible projects and mobilize an additional $3 billion

in private sector capital alongside its investments

by 2023. Other DFIs and private funders have also

stepped up to help mitigate the damages caused by

COVID-19.

In 2020, DFC hired a surge COVID-19 response

team to complement the work of DFC’s existing

business line departments in responding quickly to

high impact, high priority transaction opportunities

across a variety of sectors. For example, reliable

electricity and resilient power systems are required

to power health centers, ventilators, and other

life-saving equipment; personal hygiene and

handwashing protocols depend on clean and

accessible water systems; amid social distancing

rules, IT and telecommunications infrastructure that

enable internet connectivity are more fundamental

to education and economic participation than ever

before; and, sovereign loans are saddling developing

countries with crippling debt. For this reason, DFC’s

Roadmap for Impact looks at DFC’s investments

through a COVID-19 lens – searching for ways that

DFC can contribute not only to the current global

response but also can be prepared to help build

resilient communities and economies that can

recover sustainably from future shocks or global

crises similar to the pandemic.

DFC'S ROADMAP FOR IMPACT

Enhancing and expanding DFC’s eorts in fragile

states is essential to realizing its mandate of

advancing economic development and U.S. foreign

policy. Fragility, conict and violence not only fuel

threats to U.S. foreign policy interests, they disrupt

economic growth at both a regional and global level.

Estimates placed the economic cost of conict at

$14.5 trillion in 2019, and that cost is growing.

Consistent with both the BUILD Act and the Global

Fragility Act of 2019, DFC believes that leveraging

development nance tools alongside traditional

assistance is essential to tackling the immense

challenges fragile, conict and violence-aected

states face in a sustainable manner. However,

these settings pose unique risks and demand a

coordinated, strategic approach. Too often, these

risks lead DFIs to avoid projects in fragile states

altogether. The reprioritization described in this

Roadmap demonstrates the USG’s commitment to

preventing the outbreak, escalation, or recurrence of

armed conict and violence.

LESS DEVELOPED COUNTRY FOCUS

FRAGILE STATES APPROACH

The BUILD Act emphasizes DFC’s development focus

by mandating it to prioritize “less developed countries

and countries in transition from nonmarket to market

economies

.” Although DFC will continue to support

highly impactful projects in UMICs, these investments

should further U.S. economic or foreign policy

interests and produce signicant developmental

outcomes or provide developmental benets to

underserved populations in that country.

Consistent with the BUILD

Act’s mandate, DFC seeks

to seeks to conduct at least

60 percent of its projects in

low-income countries, lower-

middle income countries, and

fragile states.

Achieving this goal will require vigilant monitoring

of DFC’s investment strategy and portfolio given the

signicantly greater challenges and higher costs often

associated with investing in LICs, LMICs, and fragile

states. DFC will work to further develop a risk and

portfolio allocation framework to support higher risk

transactions in less developed countries. In addition,

in the post-COVID environment, DFC can play a

critical role in helping prevent vulnerable UMICs from

sliding back into LMIC or even LIC status based on

the economic contractions that many of these UMICs

have suered.

In the Fragile States Approach annex

to this strategy, DFC outlines the core

principles it will uphold when working

in fragile, conict and violence-

aected countries and steps it will

take to operationalize those principles

(Annex A).

DFC'S ROADMAP FOR IMPACT

IMPACT QUOTIENT (IQ)

The creation of IQ, a modernized development

impact measurement tool, was directed by the

BUILD Act. IQ supports DFC in its mission to nance

solutions to the most critical challenges facing the

developing world today. DFC uses IQ to:

• Inform decisions to support projects;

• Track development impact of projects over

time;

• Report development outcomes to key

stakeholders;

• Use ndings to inform future projects and

maximize future projects.

A team of DFC economists and social and

environmental policy analysts implement IQ to

provide an objective and systematic assessment

of potential and current projects. This team also

analyzes data on expected and actual impact

to further calibrate the tool and guide future

investment decisions. IQ enables DFC to classify

projects into three categories: highly developmental,

developmental, and indeterminate and evaluates

projects against metrics across the following three

development pillars

• Growth: Contributes to economic growth

through infrastructure improvements,

contribution to local income, trade benets to

the local economy, and job creation.

• Inclusion: Advances inclusion by providing

products or services, diversied workforces,

and inclusive supply chains that benet

underrepresented groups including low-

income populations, smallholder farmers,

young adults, women and women-owned

enterprises, people with disabilities,

indigenous peoples, refugees, and ethnic or

religious minorities.

• Innovation: Supports innovation through

the advancement of new products or services,

the use of innovative nancial structures

to mobilize private capital, knowledge or

technology transfer, and environmental

sustainability.

DFC'S ROADMAP FOR IMPACT

GUIDING PRINCIPLES

DEVELOPMENTAL THEMES

While DFC’s focus on projects in LICs and LMICs is

consistent with its statutory mandate, additional

strategic choices and operational improvements

are required to maximize development impact. DFC

will apply the following principles to guide these

decisions and reforms:

Proactive: Actively seek out

new clients and deals that oer

development impact.

Developmental: Focus on less

developed countries and aim to

maximize developmental impact

across the portfolio.

Collaborative: Promote

greater intra- and inter-agency

collaboration, as well as DFI and

IFI collaboration, to ensure a

coordinated approach to planning,

investment, and monitoring and

evaluation activities, while also

expanding relationships with

private investors and social sector

development actors.

Risk-Tolerant: Be willing to alter

gating criteria for considering a

broader array of potential projects

in less developed countries.

Innovative: Seek out innovative

blended nancing tools, methods,

and partnerships to overcome

persistent barriers to private

investment in developing contexts.

Transparent: Provide public

transparency regarding DFC’s

investment portfolio and solicit

ongoing feedback from the private

sector and the development

community.

DFC seeks to advance several development themes

that cut across each of the targeted priority

Development Sectors. DFC is prioritizing seven

cross-cutting themes including: Innovation Across the

Development Finance Lifecycle; Women’s Economic

Empowerment; Financial Systems Strengthening;

Sustainable Job Creation; Protecting Workers;

Bolstering Manufacturing and Global Supply Chains,

and Empowering U.S. and Local Businesses.

DFC'S ROADMAP FOR IMPACT

Cross-Cutting Development Goals

By FY 2025, across all sectors DFC aims to reach 12 million women and 6 million marginalized

individuals, support the creation of 100 thousand new host-country jobs, and elevate innovation

and technology across 50 percent of DFC’s portfolio. In addition, DFC aims to add at least 15 new

clients to DFC’s overall client base each year and work towards a goal of at least 30 percent of

clients being local or regional companies.

INNOVATION ACROSS THE DEVELOPMENT

FINANCE LIFECYCLE

Innovation is one of the primary catalysts of human

and economic development. In some cases,

innovation provides less developed countries the

opportunity to bypass traditional technologies and

stages that the industrialized world relied upon for its

development. For example, throughout sub-Saharan

Africa, many people never owned a land-based

telephone line, yet today, there are more mobile

phones in Africa than there are people. To maximize

development impact, DFIs are well-positioned to

embrace innovative technologies and business

models as both an operational imperative and a

desired feature of their portfolios. DFIs are well-

positioned to help introduce tools and technologies

that may already have been tested elsewhere.

DFC will strive to invest in transformative technologies

and incorporate innovation into each phase of

the development nance lifecycle, from project

identication to evaluation. Such innovation might

be as basic as supporting an infrastructure project

that may be the rst ever publicly tendered project

in a country (building local capacity or introducing

innovation that is already widely deployed elsewhere).

It might include DFC supporting a transaction that

deploys cutting edge technology developed in the

United States. DFC also will seek out more creative

ways to source projects and to pioneer creative

nancing models that allow it to take on technology

risk while ensuring that such risks do not translate

to the host country. By FY 2025, DFC aims to elevate

innovation and technology across 50 percent of DFC’s

portfolio.

To maximize development

impact, DFIs are well-

positioned to embrace

innovative technologies and

business models as both an

operational imperative and

a desired feature of their

portfolios.

DFC'S ROADMAP FOR IMPACT

WOMEN’S ECONOMIC EMPOWERMENT

Empowering women has far-reaching social and

economic benets. Studies show that eliminating

gender disparities in employment, wages, and

credit would add an additional $12 to $28 trillion

to the global GDP by 2025

. Providing women with

more control over their income and assets not only

provides them with greater economic opportunity

and agency, but also improves the lives of those

around them. When women earn a competitive

income, they spend the vast majority on food,

healthcare, and education, beneting their families

and their communities.

DFC’s 2X Women’s Initiative is committed to

empowering women economically and unlocking

the multi-trillion dollar opportunity that women

represent. 2X invests in projects that are owned

by women, managed by women, or provide a

service that benets women. DFC is committed to

catalyzing $6 billion of private sector investment in

global women’s economic empowerment through

its 2X Initiative over the next three years, advancing

the broader Woman’s Global Development and

Prosperity Initiative. By 2025, DFC aims to reach 12

million women. DFC prioritizes addressing challenges

women face and alleviating gender barriers across all

development sectors by:

• Providing nancing to women entrepreneurs

and women-owned small businesses that

would otherwise be cut o from the nancial

system;

• Integrating an intentional investment strategy

to support women’s economic empowerment;

and

• Investing in projects that provide a service that

benets women.

By ingraining women’s empowerment into project

sourcing and evaluation and looking for opportunities

to address structural constraints to women’s

empowerment through DFC transactions, DFC is

enabling economies to realize the multiplier eect of

women’s participation in the economy.

Gender Lens

Investment Strategy

A critical component of the 2X Women’s

Initiative is incorporating a gender lens

throughout the investment process across

DFC. This approach enables DFC Investment

Ocers to promote women’s economic

empowerment and consider gender

equity through an intentional investment

strategy applied across all transactions.

The 2X Managing Director maintains a seat

on the Investment Committee to ensure

that a gender lens investment strategy is

considered and applied for all transactions,

and the 2X Oce oers continual training

opportunities for DFC sta and clients on

gender lens investing. Additionally, gender

and women’s empowerment specically are

a key consideration when scoring a project’s

development impact under the IQ’s

Inclusion Pillar. For example, DFC measures

and scores a project’s benets to female

customers, employees, and/or women-

owned or led enterprises. The IQ Score

also attempts to capture (and encourage)

exemplary workforce policies that

advance gender equity, such as women’s

advancement in the workplace through

formal career advancement programs and/

or through family-friendly employment

benets. Additionally, the IQ framework

considers a company’s inclusive governance

structure that promotes gender-diverse

perspectives in decision-making by

measuring female representation in senior

management, the board of directors, and/

or investment committees.

DFC'S ROADMAP FOR IMPACT

FINANCIAL SYSTEMS

STRENGTHENING

A strong nancial system is critical to building

wealth, mobilizing private capital, and driving

inclusive economic growth. Yet, in the developing

world, roughly 2.5 billion adults do not have a

bank account, and 200 million businesses lack

access to credit

. DFC will continue to work in

countries with strong investment climates to attract

international capital that will advance development

objectives. However, DFC also will work to increase

access to nance and bring liquidity to markets

to create a better environment for private-sector

investment. Across DFC’s portfolio, nancial system

strengthening eorts may:

• Utilize technical and assistance to oer

training in risk-based balance sheet analysis

to reduce dependence on collateral and

expand the pool of eligible borrowers;

• Fund the application of digital technology and

mobile payments to expand market access;

• Utilize “Know Your Customer” policies to

reduce corruption and illicit payments;

• Make bank accounts available to bring micro

and small enterprises and their employees

from the informal to the formal sector;

• Promote lending practices that emphasize

reaching more women, youth, rural,

indigenous communities, and other

disadvantaged or marginalized populations;

• Use guarantees and other risk-sharing

mechanisms to expand a nancial institution’s

reach;

• Provide political risk insurance to encourage

capital mobilization in higher risk countries;

• Introduce longer tenor nancing, including

support for infrastructure projects and

residential mortgages;

• Encourage the use of investment funds, direct

equity and technical assistance to support the

development of innovative technologies and

the expansion of start-ups;

• Identify projects that create platforms for

investment that catalyze other economic

activities (e.g., industrialization or agro-

processing projects that also benet the

farmers who provide the inputs);

• Provide access to local currency loans to help

avoid currency mismatches;

• Identify transactions that will help increase

the availability of foreign currency in the local

market, which facilitates additional foreign

direct investment; and

• Identify projects that generate much-needed

foreign currency for countries that require

hard currency to engage in international

trade and investment.

A strong nancial system also depends on strong

macroeconomic management (e.g., through

ministries of nance and central banks), as

well as robust and predictable laws, policies,

and governance structures (e.g., adherence to

international protocols on dispute resolution). For

this reason, DFC will look to support projects in

countries that currently have or that demonstrate a

strong commitment to a well-managed, inclusive and

transparent scal environment, as well as a reliable

governance system.

DFC'S ROADMAP FOR IMPACT

SUSTAINABLE JOB CREATION

PROTECTING WORKERS

The International Labour Organization (ILO)

estimates that 5.4 percent of the global population,

or 188 million people, were unemployed in 2019

However, this gure is deceptive. According to

the ILO, an additional 120 million people are only

marginally attached to the labor market and 165

million others are employed but wish to work more

hours; women and youth

experience high rates

of unemployment; and, due to unprecedented

workplace closures and working hour loses

resulting from the COVID-19 pandemic, global

labor underutilization and inequality is expected to

increase dramatically

DFC supports sectors that lead to job creation

and job resiliency and employ policies to ensure

inclusivity and diversication of the workforce. To

advance more sustainable job creation, DFC will

explore opportunities to:

• Proactively support countries’ integration in

global and regional supply chains;

• Ensure that the supply chains benet

underrepresented groups including low-

income populations, smallholder farmers,

young adults, women and women-owned

enterprises, people with disabilities,

indigenous peoples, refugees, and ethnic or

religious minorities;

• Identify and prioritize investments and

sectors that have a strong job creation impact

(both institutional and self-employed) such as

agriculture or critical infrastructure projects;

• Support micro, small and medium enterprises

(MSME) movement from the informal to the

formal sector; and

• Improve job diversication and quality.

Delivering sustainable job creation helps makes jobs

more inclusive for vulnerable populations, raises

productivity, and improves the quality of livelihoods

and living standards. By 2025, DFC aims to support

the creation of 100 thousand new host-country jobs.

The BUILD Act and DFC’s Environmental and Social

Policy and Procedures (ESPP) require DFC projects to

comply with the IFC Performance Standards. These

include labor standards for occupational health and

safety; non-discrimination; prohibitions on child

labor and forced labor; freedom of association;

protections for contract, migrant, or otherwise

vulnerable workers; and adherence to local labor

laws, which typically include minimum wage, hours

of work, and regulated benets. Encouraging private

sector clients to adopt additional measures that

are recognized to enhance worker protections and

benets will augment these minimum requirements

to which DFC supported projects must adhere.

The adoption of policies that enhance the protection

of workers will benet employees’ lives and have

been shown to improve the economic performance

of companies that adopt them. Encouraging private

sector support of enhanced policies that protect

workers multiplies the impact of DFC’s investments

by improving living standards and paving the way

to more prosperous and stable economies. Across

all sectors and deals, DFC will encourage its private-

DFC'S ROADMAP FOR IMPACT

sector clients to provide resources for and adopt

elements of supplemental worker protections

conducive to the countries in which they work.

Examples of elements that companies could adopt

which go above the requirements of local law and the

DFC’s ESPP include:

• Wage parity between men and women;

• Assessing and paying living wages, especially

where the minimum wage is below the

national poverty line;

• Prot sharing, particularly in extractive

industries;

• Expanding access to paid leave and other

benets above legal requirements;

• Strengthening occupational safety and health

measures;

• Adapting work arrangements (e.g.

teleworking);

• Childcare, transportation, or food subsidies;

• Skills building, training/scholarship programs,

and commitments to promote from within;

• Diversity and inclusion targets, dedicated

diversity and inclusion personnel or internal

committees;

• Policies to promote disability accessibility in

the workplace;

• Providing healthcare access;

• Public health programs;

• Right to organize;

• Implementing employment retention

measures; and

• Preventing and responding to workplace

sexual harassment and gender-based

violence.

DFC’s ESPP outlines the ways in which the Agency

monitors how DFC-supported projects are

implementing requirements with respect to the

rights of workers. In strengthening workers’ rights of

vulnerable populations, countries can foster fairer

and more inclusive economies, protect citizens from

potential economic shocks, which can help stabilize

the security of regions (e.g., lesser migration due

to lack of opportunities) and directly increases the

national security of the United States.

DFC'S ROADMAP FOR IMPACT

BOLSTERING MANUFACTURING AND

GLOBAL SUPPLY CHAINS

The COVID-19 pandemic has exposed weak linkages

in global supply chains and required companies

and governments worldwide to be more strategic

about approaches to global supply chain models.

In addition, the manufacturing industry has been

hit particularly hard by the pandemic because

employees in this industry generally are not able to

telework and sometimes work in close environments.

The pandemic pushed some companies to better

integrate with the global economy, but also

challenged DFIs to proactively prioritize nancing

that builds resiliency in supply chains. Now more

than ever, investments in supply and value chains—

including input suppliers, producers, aggregators,

processors, manufacturers, distributors, and

retailers—across critical sectors such as health,

agriculture, energy, IT, and infrastructure, are key to

helping industries battle disruptions, especially in

emerging markets in LICs and LMICs.

The U.S. has a $2.5 trillion manufacturing sector

(11 percent of GDP) and is well positioned to share

its expertise with developing countries without a

signicant risk of jeopardizing U.S. jobs. DFC support

for manufacturing can create even more jobs for

U.S. companies (e.g., sales of equipment, parts,

components, and other inputs for manufacturing;

advisory, engineering, legal and other consulting

services, etc.) with those countries that are highly

dependent on China for manufacturing and

processing of resources.

DFC is uniquely positioned to drive the private-sector

investments necessary to mitigate the economic

shocks that its clients experience. DFC will continue

to help companies and sectors counter shortages

of essential goods, disruptions in sourcing raw

materials, and the inability to meet urgent consumer

demands. Across sectors, DFC can strengthen and

diversify global supply chains by:

• Investing in supply chains that expand the

distribution of diagnostics, therapeutics,

vaccines, and other medical supplies,

products, and equipment needed to help

countries respond to the health-related

demands of the COVID-19 pandemic;

• Financing new transportation, logistics and

infrastructure projects, to include

warehousing and cold chains, needed to

relocate and reorient global supply chains;

• Supporting local procurement and

providing the technical assistance necessary

to strengthen value chains and manage risks;

• Investing in technologies that connect the

supply of and demand for equipment;

• Providing political risk insurance to mitigate

risks that would hinder MSME enterprises

from investing in local supply chains and

increasing domestic production;

• Expanding DFC’s client base to more directly

impact host countries’ supply chains; and

• Identifying projects and sectors to invest

in that can quickly scale up manufacturing

capacity, support compliance with high-

value U.S. standards, and provide access to

essential items in response to crises.

In proactively safeguarding supply chains, DFC

advances U.S. foreign policy and national security

interests, ensures that consumers have access

to essential goods and helps emerging market

economies meet the demands of unprecedented

challenges and shocks.

DFC'S ROADMAP FOR IMPACT

EMPOWERING U.S. AND LOCAL

BUSINESSES

DFC aims to promote self-reliance and sustainability

within countries, while increasing opportunities for

U.S. company partnerships. By FY 2025, DFC aims to

strategically expand its client base by adding at least

15 new clients each year and working towards a goal

of at least 30 percent of clients being local or regional

companies. DFC will continue to build relationships

with the U.S. private sector and other external

partners that are engaged in priority Development

Sectors. DFC must work hand-in-hand with the U.S.

embassies, including USAID missions and other

agencies at overseas posts to determine the best

business development approach for the particular

local market to increase the participation of both

local and U.S. based private sector investments. DFC

will consider the following approaches to identify new

transactions and expand its client base:

• Advertise in local media, providing clear gating

criteria to mitigate the risk that unqualied

companies would apply for DFC support or be

otherwise disappointed;

• Work with local business and trade

associations, nancial institutions, regional

nancial institutions, and more to identify

potential transactions;

• Work with sovereign wealth funds and

local pension funds to identify potential

investments in local companies;

• Provide local currency loans and guarantees

to help indigenous companies avoid currency

mismatches;

• Provide technical assistance to local nancial

institutions to help them identify SMEs that

would benet from their support;

• Advertise and provide on-the-ground training

or webinars for local companies, so they

better understand DFC’s tools and processes;

and

• Identify equity investment opportunities in

smaller rms that may not be prepared to take

on additional debt.

To expand business development eorts, DFC will

execute new approaches to attract a wider net of

local and regional clients whilst remaining committed

to prioritizing transactions that involve U.S. investors

and identifying opportunities for U.S. small and

medium enterprises.

DFC'S ROADMAP FOR IMPACT

DEVELOPMENT SECTORS

Maximizing the development impact of DFC’s

portfolio will require the Agency to identify and seek

out projects that contribute to economic growth,

innovation, and inclusion. To achieve this goal, DFC

has identied six priority Development Sectors that

align with U.S. development and foreign policy, DFC’s

mission and nancing capabilities, and global eorts

to address the short- and long-term socioeconomic

impacts of unprecedented shocks, such as the

COVID-19 pandemic

TECHNOLOGY AND

INFRASTRUCTURE

FOOD SECURITY AND

AGRICULTURE

ENERGY

HEALTH

FINANCIAL INCLUSION

WATER, SANITATION,

AND HYGIENE

Data points referenced in the DFC Roadmap for Impact are as of September 2020.

DFC'S ROADMAP FOR IMPACT

TECHNOLOGY AND INFRASTRUCTURE

Technology and critical infrastructure are the

backbone of economic growth and trade in

today’s interconnected world. DFC is committed

to expanding access to trusted technologies that

enhance connectivity in the developing world

and make business more ecient and secure.

Furthermore, DFC recognizes that investments

in critical infrastructure remains essential to

countries’ private sector engagement and global

competitiveness. Roads, ports, airports, warehouse

and refrigerated facilities, and other transportation

and infrastructure assets are responsible for moving

people and goods reliably within and across borders.

Furthermore, less developed countries face the

challenge of providing aordable and reliable internet

services to their citizens without compromising the

security of ICT networks to harmful state and non-

state actors. ICT investments and digital services

propel virtually all development sectors and generate

new opportunities for SMEs.

As explained in USAID’s Digital Strategy, four billion

people do not have access to the internet globally,

including roughly 93 percent of households in the

least-developed nations

. The COVID-19 pandemic

has magnied the importance of internet access

and the consequences of the digital divide – the gap

in digital accessibility within and across countries

– as more public services, such as education and

healthcare, shift to online platforms. The gender

digital divide is also a signicant limitation on network

infrastructure business opportunities, as social and

other limitations on women’s use of technology in

many countries directly limits the number of potential

customers. To expand the market, DFC will invest

in rms with business models, service design, and

marking strategies that eectively help bridge the

gender digital divide.

In many LICs and LMICs, insucient critical

infrastructure continues to stie productivity and

reinforce the cycle of poverty. In developing cities,

limited transit options and aordable housing

compound development challenges posed by

growing populations, economic inequality, trac

congestion, and pollution. Addressing ICT and

infrastructure deciencies, deterring malign inuence

applied through infrastructure development, and

overcoming negative disruptions to infrastructure

sectors resulting from the COVID-19 pandemic will

be essential to economic recovery and security in

both less developed and developed countries. DFC is

committed to expanding access to technologies and

building the foundation for growth and prosperity

through investments in infrastructure.

Focus Areas

Open, Interoperable, Reliable and Secure

Digital Infrastructure and Internet Access. By

making networks in emerging markets more robust

and investing in partners that are building digital

infrastructure (ber, data centers, etc.) and advanced

networks, DFC can help close the digital divide in the

world’s poorest countries. Lacking ICT infrastructure

remains the primary barrier to internet access in

less developed countries, especially in rural and

less densely populated areas, which are often also

The COVID-19 pandemic has

magnied the importance

of internet access and the

consequences of the digital

divide — the gap in digital

accessibility within and

across countries — as more

public services, such as

education and healthcare,

shift to online platforms.

DFC'S ROADMAP FOR IMPACT

poorer. Digital infrastructure is required at multiple

levels, from international deep-sea cables to last-mile

services, and involves various technology options,

including mobile networks (3G, 4G, or 5G), ber, and

more innovative delivery systems. DFC investments

in this sector will include risk-based assessments and

approaches to network security and supply chains.

DFC’s approach will demonstrate to developing

countries that expanding internet networks and

advancing network security are not mutually exclusive

goals. While exploring opportunities to advance

ICT innovation, DFC can more actively support the

implementation of partner countries’ broadband

plans by providing technical assistance and nancing

for public-private partnerships that expand proven

digital infrastructure.

Limited ICT infrastructure is not the only barrier to

internet adoption among underserved populations, as

poorer individuals often cannot afford the devices and

services needed to reliably access the web. Other

than boosting incomes, potential solutions to this

affordability gap involve lowering the cost of internet-

accessible devices, such as through mobile phones

and computers, and internet services, such as data

packages, Wi-Fi subscriptions, and access to a fixed

line. DFC can address this gap by investing in

financially inclusive products or business models that

drive down these costs for end-users.

DFC is particularly interested in nding opportunities

to support innovative technology companies through

direct equity investments that will advance critical

development outcomes.

Types of Projects: Broadband Networks,

Telecommunications Towers, Data Centers,

Innovative ICT Delivery Models, Internet Services,

Mobile Services, Internet-Accessible Devices,

E-commerce, Social Media, FinTech, Cloud-computing,

Articial Intelligence, 5G, and other Software as a

service (SaaS (workforce development training,

education platforms, comms, etc.

Sustainable Urban Transport and

Infrastructure. By 2050, more than two-thirds of

the world’s population is projected to be living in

cities. This growth in urban populations is expected

to take place primarily in LICs and LMICs in Africa

and Asia

. Urban infrastructure and housing are

complex sectors, including not only the construction

of physical structures but also land development,

land titling, local building requirements, security

of tenure, aordability, availability of utilities, and

proximity to essential services such as education.

DFC’s investments to improve the quality of

roads, railways, and other critical transportation

infrastructure can support local economies,

reduce transit times, improve safety, expand major

commercial routes, and connect cities and borders

to increase economic productivity. DFC can build o

of OPIC’s success in the housing sector, and continue

to support projects across the housing value chain,

land development, construction, mortgage nance,

securitizations, and other real estate services.

Furthermore, the sustainability of urban areas also

include the incorporation of modern technologies

and transportation to help improve the quality of

life of citizens. In particular, electric technologies

represent increasingly cost-competitive alternatives

Transforming

Telecommunications

in Myanmar

DFC’s $250 million in nancing to

Apollo Towers Myanmar supported the

development of telecommunications towers

throughout the Myanmar. Apollo has built

nearly 2,000 towers and mobile penetration

has soared from three percent a decade

ago to almost 90 percent in 2019. This

increased connectivity is bringing signicant

improvements to the way people live and

work, stimulating business activity and

economic growth.

DFC'S ROADMAP FOR IMPACT

Eurasia

Middle-East

Indo-Pac ific

Latin America

Sub-Saharan Africa

Multiple Countries

Sector: Technology & Infrastructure

Number of Committed Projects

LIC LMIC UMIC HIC Multiple/Regional

to fossil-fueled vehicles, especially in countries

with low electricity prices or signicant renewable

energy resource potential. DFC can support cities’

modernization through investments in e-mobility

projects, as well as public-private partnerships (PPPs)

that expand the quality and reach of more traditional

urban transportation infrastructure.

Types of Projects: Rapid Transit Bus Systems, Light

Rail, Ride-Sharing, Integrated Transport Systems,

E-Mobility, Housing Micronance Loans, and Land

Titling

Trade and Tourism Bottlenecks. Roughly 80

percent of international trade volume is channeled

through ports, making competitive port infrastructure

vital asset for developing regions looking to increase

their participation in global supply chains

. Similarly,

airports are the gatekeepers of the tourism industry,

and passable roads and railways are required

to connect these economic hubs. The COVID-19

pandemic has placed enormous stress on these

sectors through slowdowns in trade and travel, as

well as new health and safety requirements. DFC can

continue to support critical infrastructure projects in

these areas by focusing on opportunities to reduce

logistical bottlenecks and facilitate international trade

through PPPs and investments in privately-operated

facilities and services.

Types of Projects: Ports, Airports, Airlines, Roads,

Railways, and Logistics and Facilitation Systems

Investment Opportunities

DFC’s current active portfolio in the technology and

infrastructure sector, as dened in this section of

the Roadmap, including infrastructure dedicated

to transportation and construction of housing and

hotels, is over $4 billion across 94 projects. As of

September 2020, DFC’s investments in the pipeline

with a medium to high probability of commitment

was valued at $1 billion.

DFC is partnering with the private sector to invest in

quality infrastructure and technology investments

that are market-driven, and open and inclusive. DFC

is investing in telecommunications and internet

Improving Cargo Shipping

Logistics in sub-Saharan Africa

Financing is helping Alistair Group, a small

business based in Dar es Salaam, Tanzania,

introduce a more ecient system for

moving cargo. Alistair operates a eet of

hundreds of trucks that serve mining, oil

and gas companies, as well as global relief

organizations throughout Tanzania, Zambia,

the Democratic Republic of the Congo,

Mozambique and South Africa. Alistair

equips its trucks with GPS tracking, trains

drivers extensively on safety and accident

prevention, and maintains a zero-tolerance

policy to bribery and corruption that often

poses a hurdle to moving goods across

borders. In addition to improving the quality

and reliability of ground transportation

across the region, the project has created

hundreds of local jobs, while helping

local businesses and relief organizations

transport cargo.

DFC'S ROADMAP FOR IMPACT

access, value chains that connect producers of raw

materials with end users, and essential infrastructure

such as roads, railways, ports, and airports to

strengthen connectivity and help the continent

further integrate into the global economy. Through

Connect Africa, DFC will invest over $1 billion in

Africa where there is signicant opportunity for

investors in critical infrastructure and ICT. Africa faces

a signicant shortage of critical infrastructure to meet

the needs of a growing population that is increasingly

living and working in urban areas, and countries that

are seeking better trade and connectivity with the

rest of the world. In addition to providing reliable

electricity to the hundreds of millions of people who

lack access, Africa needs modern hospitals, buildings,

airports, roads, rail networks, and seaports.

DFC, in partnership with the private sector, is

nancing the backbone of infrastructure that will be

needed for markets to transition to next generation

technologies, such as 5G, in the years ahead. DFC will

work with regional allies to spur further investment

in Africa, the Middle East, the Indo-Pacic, Latin

America and Caribbean, Europe and Eurasia to

support more infrastructure development. In Latin

American, DFC can help meet the demand for

improved ICT assets, including new macro towers and

data centers, that can be facilitated through greater

private sector engagement. Furthermore, DFC can

focus investments in Indo-Pacic and sub-Saharan

Africa, the two largest mobile markets in the world,

experiencing 30 percent average annual growth in

mobile phone connections over the last two decades.

For example, DFC aims to advance the USG’s Indo-

Pacic Economic Vision, which includes an initiative

known as the Digital Connectivity and Cybersecurity

Partnership that seeks to improve partner countries’

digital connectivity and expand opportunities for U.S.

technology exports.

With equity authority, DFC can evaluate risk

dierently and participate in earlier stage, more

technology driven, opportunities. DFC will prioritize

transactions that generate both developmental and

foreign policy benets in these regions, such as digital

infrastructure projects that help prevent state actors

from exerting malign inuence in less developed

countries.

DFC’s Connect Africa Initiative

Africa requires signicant investment in

connectivity to forge deeper ties with the

rest of the world, facilitate cross-border

trade, and foster sustainable economic

growth. Through Connect Africa, DFC is

investing $1 billion in telecommunications

and internet access, value chains that

connect producers of raw materials with

end users, and essential infrastructure

such as roads, railways, ports, and airports.

By investing in these three key areas, DFC

can strengthen connectivity and help the

continent further integrate into the global

economy.

DFC'S ROADMAP FOR IMPACT

Measuring Success: High-level Investment Targets and

Development Goals

• Commit to $5 billion in technology and critical infrastructure.

• Expand logistics and transportation infrastructure to increase regional and global connectivity

through 10 major infrastructure projects in LICs, LMICs, and fragile states.

• Increase internet access for 3 million people.

Aspirational Milestones

• Increase mobile subscriptions in 10 focus countries due to DFC-supported investments.

• Increase ease of transportation in less developed countries.

• Improve nance opportunities of e-mobility projects.

• Increase access to nancial services through technology.

• Increase access to aordable housing in urban areas.

• Increase sustainable job growth through jobs obtained via infrastructure projects.

• Increase use of internet apps to spur growth of commerce and industry.

• Invest in cloud computing expansion, data center businesses, or digital work facilities.

DFC'S ROADMAP FOR IMPACT

ENERGY

Access to reliable and aordable energy is

inextricably linked with human and economic

development. Widespread energy poverty limits the

quality of life, business activity, food production, and

access to healthcare and education. As demonstrated

by the COVID-19 pandemic, hospitals and health

clinics require stable power for ventilators and other

life-saving equipment. Students depend on electricity

to access the internet and study past nightfall.

Water and sanitation networks use electricity to

pump drinking water and sterilize waste. Meanwhile,

other development sectors, such as agriculture and

manufacturing, require energy-intensive inputs to

expand production and, ultimately, provide food

security and create jobs. As countries not only

respond to the pandemic but also turn to longer-

term social and economic development goals, access

to modern energy should be prioritized as it is

integral to countries’ economic growth, inclusion, and

ability to provide solutions to critical development

challenges.

DFC will prioritize the achievement of “universal

energy access,” as set forth in the U.S. National

Security Strategy (NSS). The Agency will also work

with partners to safeguard their economies through

the diversication of energy sources, supplies, and

routes, which will result in less volatile energy costs,

lower economic risks, and relief from countries that

use energy dependence as a tool for coercion. To

facilitate these goals, DFC will continue to actively

contribute to U.S. whole-of-government initiatives,

such as Power Africa, Asia EDGE, and América Crece,

and advance U.S. energy development eorts, such

as the European Energy Security and Diversication

Act of 2019. Building on its extensive experience

in the energy sector, DFC can work to strengthen

emerging energy markets and improve energy-

related developmental outcomes by focusing on

transactions that help expand electricity access,

diversify energy sources to promote security and

development, strengthen power markets, and

support emerging energy technologies.

Focus Areas

Electricity Access. According to the International

Renewable Energy Agency, 860 million people

worldwide do not have access to electricity

. Close

to 600 million of those without electricity live in

sub-Saharan Africa, while most of the remaining

population is spread across Asia, Latin America, and

the Middle East. Of those without electricity access,

the majority reside in rural areas out of reach of

existing power transmission and distribution (T&D

infrastructure. Through the provision of technical

assistance, nancing, and grant-based aid, the USG’s

Power Africa initiative has spearheaded multi-national

eorts to bring power to those in rural communities

and peri-urban settlements still lacking electricity

connections. In addition, the USG’s Asia EDGE and

América Crece initiatives provide similar assistance

in the Indo-Pacic and Latin America and Caribbean

regions, respectively. As an active member of each

of these key USG initiatives, DFC can continue to

collaborate with the interagency to unlock private

capital for projects designed to expand electricity

access in these regions, to help improve the quality

of service to power and ensure that those who gain

access to electricity can actually afford and consume

it.

Although the public sector is typically responsible for

T&D investments, DFC can explore opportunities to

fund technical assistance for T&D upgrades and

begin to support transactions involving off-grid

energy solutions, such as micro- and mini-grids, that

provide viable alternatives to grid connections. In

addition, DFC can explore opportunities to participate

in innovative private financing structures for T&D.

DFC'S ROADMAP FOR IMPACT

Types of Projects: Power Generation, Transmission

and Distribution, O-Grid Energy Solutions (e.g.,

Micro/Mini-Grids, Solar Home Systems), Smart Grid,

Energy for Agriculture, Energy for Industrialization,

Integrated Energy Companies, and Energy Storage

Energy Security and Diversication. Reducing

countries’ dependencies on a single energy source

and energy imports from autocratic regimes lowers

long-term energy costs and supports domestic

energy providers, while also protecting countries’

sovereignty and economic independence. There

are critical developmental and foreign policy

benets from bolstering the energy security of less

developed countries, as well as higher-income allies.

For example, the European Energy Security and

Diversication Act of 2019 aims to assist European

and Eurasian countries in reducing their reliance on

energy resources from countries that use energy

dependence to exert undue political inuence.

Similar to other USG initiatives focused on improving

energy security in the Middle East, Indo-Pacic,

Africa, and Latin America, the policy encourages

U.S. public and private sector investment in energy

projects that bridge the gap between energy security

requirements and commercial demand, including

power generation, energy eciency, energy storage,

and other technological innovations.

In some regions, cross-border electric transmission

and pipeline projects can also help close these

gaps, while promoting greater regional security and

economic integration. For example, in the Southern

Africa region, Botswana and Namibia have enormous

solar power potential, Zambia and Zimbabwe have

hydropower resources, and Mozambique has

gas reserves. If these countries were to exploit

their energy resources and improve cross-border

transmission, the entire region would benet. It also

has been estimated that West African countries could

save up to $32 billion through the ecient trading of

electricity across borders

. Although cross-border

infrastructure buildouts are complex and politically

challenging, these projects can yield far-reaching

development and security payos.

Types of Projects: Power Generation, Transmission

and Distribution, Oil and Gas, Energy Storage, Energy

Eciency, Smart Grid Technologies, and O-Grid

Energy Solutions

Providing Rural Electricity

Access in sub-Saharan Africa

Access to electricity in rural regions in

Kenya averages 60 percent, compared

with 78 percent in urban areas. DFC signed

a $20 million loan to a project in Kenya

that will provide funding to purchase

accounts receivables of Pay-As-You-Go

X850 solar home systems for customers

of d.light Limited, structured as an

innovative o-balance sheet nancing by

U.S. company Solar Frontier Capital Ltd.

The project will provide the rst large-scale

demonstration of an o-grid solar home

system receivables nancing structure.

d.light Limited provides products that

serve as an alternative to kerosene lamps

and diesel generators and oers a pay-

as-you-go model for larger solar home

systems. The sales made possible through

DFC’s nancing will provide energy access

to a projected 270,000 households, or

approximately 1.2 million people.

DFC'S ROADMAP FOR IMPACT

Independent Power Producers (IPPs) and Public-

Private Partnerships (PPPs) in Transitioning

Power Markets. DFC and other DFIs have

demonstrated repeatedly that private investment

and well-designed public-private partnerships in the

power sector can lower electricity costs and boost

domestic generation capacity. DFC can build on these

eorts by pursuing projects that involve IPPs and

PPPs in countries with limited experience with these

types of transactions. By targeting innovative projects

in countries that have not yet made the transition to

competitive energy markets, DFC can apply lessons

learned from previous engagements to regions

where they will have the greatest development

impact. In addition, supporting public tenders for

power projects increases transparency and drives

down the cost of electricity, helping increase the

competitiveness and growth of other industries.

Types of Projects: Power Generation, Energy Storage,

and Energy Eciency

Emerging Energy Technologies. Innovation in the

energy sector has yielded new technologies with

the potential to overcome challenges in emerging

energy markets and speed the transition to cleaner,

less expensive, and more reliable energy sources.

Following technological advancements and cost

reductions over the past decade, short-duration

energy storage, o-grid energy solutions, smart

grid, o-shore wind, oating solar, and electric

vehicles have already proven their commercial

viability in both developed and emerging contexts.

Meanwhile, long-term energy storage, carbon

capture, modular nuclear reactors, hydrogen fuel,

and other breakthrough technologies are being

piloted around the world and, in some cases, are

projected to be commercially viable in the next few

years. DFC generally supports least-cost technology

options in the power generation space. DFC also can

signicantly expand its development impact in the

energy sector through transactions that advance

market penetration of newer technologies, when

proven commercially viable and with proper risk

mitigation including ensuring adequate regulatory

environments in less developed countries, thereby

supporting developmental outcomes and paving the

way for more widespread deployment.

Types of Projects: Energy Storage, O-Grid Energy

Solutions (e.g., Mini/Micro-Grids, Solar Home

Systems), Smart Grid, O-Shore Wind, Floating

Solar, E-Mobility, Carbon Capture, Modular Nuclear

Reactors, and Hydrogen Fuel

Three Seas Initiative

DFC is endeavoring to support projects

in furtherance of energy independence

in Europe and Eurasia, in line with the

European Energy Diversication and

Security Act (EEDSA). The Three Seas

Initiative has become a signicant focus

of U.S. strategic engagement in Eastern

and Central Europe and the Baltic nations.

DFC is proactively engaging countries

in the region and will advance energy

independence in these predominantly

former Soviet bloc countries to advance

U.S. foreign policy goals as well as

Congress’s direction in the EEDSA.

DFC'S ROADMAP FOR IMPACT

DFC’s current portfolio in the energy sector is around

$11 billion, more than one-third of the Agency’s active

portfolio. The energy portfolio includes but is not

limited to projects focused on hydro, solar, biomass,

geothermal, hydroelectric, and fossil fuel in addition

to transmission and distribution, o-grid investments,

and oil and gas extraction, transportation, and

operations. DFC’s portfolio in the energy sector spans

across LICs, LMICs, UMICs, and HICs in addition to

fragile states. As of September 2020, DFC’s pipeline in

the energy sector with a medium to high probability

(50-100 percent) of commitment was valued at

$2.6 billion.

Most individuals without electricity access reside in

LICs and LMICs, and DFC is committed to increasing

its investments in these countries. DFC will expand

its investments in systems and technologies that

provide higher-level service to rural customers (e.g.

solar home systems and mini-grids) to help improve

electricity access and reliability.

In addition, it is critical that countries in Europe and

Eurasia achieve energy independence to help them

maintain their own autonomy and security, as well

as stay on a positive economic growth trajectory.

DFC will expand its eorts to support USG initiatives

that focus investments regionally, using targeted

investments to strengthen energy markets in sub-

Saharan Africa, Southeast Asia, Latin America and

the Caribbean, Europe, and Eurasia. DFC will explore

opportunities to nance IPP projects in countries

that have not yet had a successful IPP to promote

private investment in the countries’ power sectors.

As economies move past COVID-19, DFC will

work ensure that previous gains in the sector are

safeguarded. Furthermore, DFC will provide reliable

and aordable power in fragile states to help stabilize

countries through economic growth and jobs.

Investment Opportunities

Eurasia

Middle-East

Indo-Pac ific

Latin America

Sub-Saharan Africa

Multiple Countries

Sector: Energy

Number of Committed Projects

LIC LMIC UMIC HIC Multiple/Regional

DFC'S ROADMAP FOR IMPACT

Measuring Success: High-level Investment Targets and Development

Goals By 2025

• Commit $10 billion to the energy sector.

• Increase country and regional energy security through diversied domestic power generation

in 10 countries and at least two cross-border investments (transmission line or pipelines).

• Increase electricity access for at least 10 million people by 2025.

Aspirational Milestones

• Lower the electricity and/or energy costs in a country due to DFC-supported investments.

• Increase deployment of metering at end user of electricity.

• Finance or insure distribution of gas for cooking in a country where biomass and charcoal

remain the primary cooking fuels.

• Finance or insure an electric vehicle company for the rst time.

• Identify opportunities to support the development of the modular nuclear industry.

• Support the rst competitively tendered IPPs in countries.

• Develop a mini-grid nancing program.

• First-time investments in private power transmission line projects and distribution companies.

• Finance or insure energy import infrastructure and cross-border energy transactions.

• Launch one blended nancing tool to advance energy sector development.

• Make ten investments in energy storage sector (including batteries and hydrogen).

• Increase DFC investments in energy sector that meet 2X criteria.

DFC'S ROADMAP FOR IMPACT

The inability of individuals and MSMEs to access

nancial services and capital is a major inhibitor

of social and economic development. MSMEs are

signicant drivers of economic growth, sources of

employment and providers of critical goods and

services. Many women, microenterprise owners,

small businesses, rural populations, youth, religious

and ethnic minorities, disabled individuals and

other nancially disadvantaged populations lack

the documentation, collateral or access needed to

open bank accounts and obtain credit. As a result,

traditional nancial institutions are often unable to

provide services to these groups or are required to

develop new risk assessment tools, such as creative

balance sheet nancing, assessments of digital

records, and detailed questionnaires, to consider

them as customers. Even with these mechanisms,

high transaction costs prevent many individuals and

small businesses in less developed countries from

using banking services.

DFC provides market rate nancing (non-

concessional) to clients who have determined that

private sector nancing or political risk insurance is

not available at sustainable terms or tenors. In some

cases, DFC can work with other entities providing

grants or nancing at blended rates. DFC has helped

individuals secure credit for housing, education,

agriculture, healthcare, and other development needs,

and obtain loans for MSMEs. DFC often works with

monetary nancial institutions, impact investment

funds and local commercial lenders to reach these

individuals expeditiously. By enabling individuals to

start and grow businesses, nancial services increase

revenues and incomes, create jobs, and ultimately

help communities grow. Financial institutions provide

individuals with digital identities which also promote

nancial inclusion but also support the delivery

of other critical public services. DFC will support

nancial investment including digital technologies

and companies that provide digital solutions to

reduce barriers to nancial services for unbanked and

underserved populations. The introduction of these

services require nancial systems and technology

that support responsible market conduct particularly

where regulatory mechanisms are weaker.

DFC’s Loan Portfolio

Guarantees

DFC’s Portfolio for Impact and

Innovation allows companies to

obtain loans up to $10 million through

a streamlined approval process. Yet,

given the signicant costs associated

with processing direct loans, it can be

dicult for DFC to justify making loans

of less than $1 million to an individual

client. DFC is now able to also oer

a loan portfolio guarantee product

(LPG) through its Mission Transaction

Unit, which will allow DFC to provide a

nancial institution with a guarantee for

a portfolio of loans made to hundreds,

if not thousands, of customers. There is

an expectation of some level of default

among the many borrowers under an

LPG, meaning there generally is a higher

subsidy cost for DFC to support these

transactions. Consequently, DFC will look

to collaborate with interagency partners

such as USAID to help share in the cost of

these transactions, as well as to provide

technical assistance to increase the

development impact and nancial viability

of each transaction under an LPG.

Financial Inclusion

DFC'S ROADMAP FOR IMPACT

Financing for MSMEs, Women, and Other

Underserved Populations. Progress on nancial

inclusion has helped stimulate broad-based

economic growth in both developed and developing

economies, but there is still signicant work to be

done. About 980 million adults do not have an

account, 56 percent of all unbanked adults globally

As a result, developing countries face a considerable

credit gap that prevents many small businesses

and women entrepreneurs from reaching their

full potential. Working with local partners and USG

initiatives to source projects, DFC can continue

to help close the nancial services gap and drive

developmental impact in this space.

Types of Projects: Individual Business Loans,

Microloans, Lease-To-Own Financing, Agriculture

Loans, Energy Loans, and Risk-Based Credit Analysis

Financial Service Technologies for Underserved

Populations. Financial technology (ntech) is

disrupting the nancial services industry and

expanding access to nancial services in developing

economies. By lowering costs, eliminating biases,

and removing procedural and geographical

challenges of traditional service delivery models,

digital technologies create opportunities for these

previously unbanked populations. These technologies

also enable businesses to enter the formal sector,

increase payment rates, and reduce their cost of

capital more easily. DFC is able to both nance

companies that are introducing nancial technologies

into the market, as well as supporting its clients

in their use of these technologies to better reach

underserved populations. DFC can increase the use

of ntech products already deployed in emerging

markets, including online banking, mobile payments,

alternative lending, blockchain-based systems and

digital identity platforms. Of course, responsible

nancial practices in the country that prevent

fraud and abuse are critical to making this a

successful eort.

Types of Projects: Mobile Payments, Online Banking,

Alternative Lending Platforms, Digital Identity

Systems, Credit Data Infrastructure, and Currency

Digitization

Extending Credit to Low-Income

Entrepreneurs in India

DFC’s investment in Patamar Capital’s

Livelihood Impact Fund (LIF) showcases DFC’s

strategic commitment to nancial inclusion.

LIF invests in Kinara Capital, a women-

owned non-bank nancial institution in India

providing much-needed capital to India’s rural

poor. Kinara Capital lls the gaps between

micronance and bank funding by providing

loans of $2,000- to $20,000 to small- to

medium-sized enterprises in India, lending for

working capital and capital asset purchases.

Through Kinara Capital’s loans, low-income

entrepreneurs can expand their businesses

through the purchase of additional machinery

or raw materials, leading to an increase

in business income and hiring of more

employees. As of the end of 2019, Kinara

helped create 60,000 new jobs (21,000 held

by women). Kinara’s loans have allowed its

SME borrowers to increase business revenue

by an average of 15 percent and provide

2,000 people with their rst job.

Focus Areas

DFC'S ROADMAP FOR IMPACT

100

120

Eurasia

Middle-East

Indo-Pac ific

Latin America

Sub-Saharan Africa

Multiple

Sector: Financial Inclusion

Number of Committed Projects

LIC LMIC UMIC HIC Multiple

Investment Opportunities

Fifty-seven percent of DFC’s active portfolio projects

are in the nancial sector, making up the largest

share of DFC’s portfolio. Combined, DFC’s nancial

sector projects are valued at $13.8 billion. More than

half of DFC’s pipeline projects with a medium or high

probability of receiving nancing are in the nancial

sector, almost all of which were focused on increased

nancial inclusion by targeting SMEs, women, rural

businesses, ethnic or religious minorities, individuals

with health issues or disabilities or other underserved

populations. The pipeline includes investment funds

with global reach, as well as a large concentration

of projects in India, sub-Saharan Africa, and Latin

America.

Virtually all unbanked adults live in developing

economies, with the majority of this population

coming from heavily-populated countries in the Indo-

Pacic, sub-Saharan Africa, and Latin America.35F A

signicant portion of MSMEs in emerging markets

are currently without banking services, and a large

concentration of these businesses are in the Indo-

Pacic and Latin America.

In addition, DFC can consider internet access and

mobile device ownership rates to determine areas

where nancial technology solutions have the

greatest commercial and developmental potential.

For example, the number of total smartphone users

in India alone is expected to grow from 279.2 million

in 2018 to an estimated 829 million in 2022. DFC can

support the distribution of financial technology in

Africa and the Indo-Pacific in parallel with its efforts to

expand “open access” telecommunications

infrastructure and low-cost internet and mobile

services.

Reforming Lending Practices

and Monetary Policy in the

West Bank

In the West Bank, through DFC’s support

for a bank, including risk-based credit

analysis training delivered collaboratively

through a USAID grant, the nancial

institution developed the capacity to assess

the credit risks and balance sheets of small

businesses, enabling them to provide credit

to local entrepreneurs and companies

who previously had limited access to

capital. Women who had relied on their

jewelry as collateral for small loans in the

past were now able to present business

plans and balance sheets to demonstrate

their creditworthiness, which lead to the

expansion of women-owned enterprises.

Employees of micro and small enterprises

that were able to move from the informal

to the formal sector, now had pay slips to

show at the bank so that they could open

bank accounts and obtain car and house

loans. Impressed by the economic impact

of these loans, the local monetary authority

decided to adopt new policies to support

small business growth in the region.

DFC'S ROADMAP FOR IMPACT

Measuring Success: High-Level Investment Targets and

Development Goals by 2025

• Commit to catalyze $6 billion directly and indirectly in 2X qualifying transactions (i.e., women-

owned or women-led businesses, businesses that benet women, or businesses that establish

a credible gender strategy and clear thesis to invest in women).

• Invest $100 million in projects that include innovations in nancial technology.

• Bring 100 companies into the formal sector from the informal sector through focused and

innovative nancial services for MSMEs.

Aspirational Milestones

• Increase access to nancing to disabled individuals, indigenous groups, or other historically

marginalized populations.

• Train nancial ocers in risk analysis to allow balance sheet nancing for SMEs, rather than

reliance on collateral (assuming Central Bank regulations allow).

• Improve commercial services, industrial output or agricultural production as a result of nancial

services access.

• Improve regulatory structure, reduce corruption, or remove obstacles to investment as a result

of DFC transaction in coordination with the Department of State and other USG agencies.

• Facilitate adoption of company policies that promote greater diversity and inclusion.

• Introduce new nancial service technologies.

• Invest in projects that develop digital payment systems or banking services via mobile phones

or computers.

DFC'S ROADMAP FOR IMPACT

FOOD SECURITY AND AGRICULTURE

Agricultural growth remains the most eective

pathway out of poverty for the world’s poorest

people. It generates income and demand for locally

produced goods and services, strengthens local

and regional supply chains and plays a pivotal role

in improving nutrition by making food and other

necessities more aordable. Helping farmers earn

a fair return and involving them in value-added

processing helps them emerge from poverty and

gives them an incentive to stop growing illicit crops

that drive the global drug trade. Yet, agricultural

development remains largely under-nanced globally.

The annual nancing gap for agriculture is estimated

at around $115 billion in the 12 USG Feed the Future

countries

. Among other factors, the agriculture

nancing gap is reinforced by perceived risks in

supply chains, inconsistent and complex land titling

regimes, nanciers with limited agriculture related

knowledge, lack of supportive infrastructure such

as power irrigation and roads, and unsupportive

regulations and nancial infrastructure.

DFC will support private sector projects that

promote a world free from hunger, malnutrition

and poverty, as set forth in the Global Food Security

Act, reauthorized in 2018. DFC will continue to

actively contribute to USG multiple Initiatives, such

as Feed the Future, that work with the private sector

to modernize and transform food systems. DFC

will prioritize projects that increase the availability,

access and affordability of food; improve incomes for

rural communities; strengthen supply chains

to link farmers to markets; and provide access

to agri-inputs. DFC will also promote farmers’

resilience to environmental changes; improve farm

production to make communities more resilient to

shocks; increase the availability and quality of post-

harvest storage, especially cold-chain solutions, to

reduce post-harvest losses; and increase the quantity

and quality of agricultural production, especially of

crops that are consumed as foodstuffs locally or

regionally.

DFC will also support anti-narcotic initiatives in places

like Colombia and Afghanistan by providing robust

financing to encourage farmers to grow legal,

sustainable crops instead of illicit alternatives. To

achieve maximum impact, DFC will deliberately

prioritize the quantity and quality of developmental

impact of projects over their dollar size. Because the

projects and markets in LICs, LMICs and fragile states

are smaller, DFC will aim to do more projects with a

smaller average investment size to encourage a focus

on the least developed markets where DFC’s dollars

can have the most developmental impact.

DFC will support private

sector projects that

promote a world free from

hunger, malnutrition and

poverty, as set forth in the

Global Food Security Act,

reauthorized in 2018.

DFC'S ROADMAP FOR IMPACT

Focus Areas

Strengthening Agriculture Supply Chains and

Food Market Systems. Stronger commodity

supply chains, improved post-harvest handling,

and food market systems are essential to inclusive

economic growth and food security. Rather than

focusing its investments on subsistence farming or a

single commodity, DFC will seek to catalyze private-

sector investment across agricultural supply chains

to eciently link producers to service providers,

aggregators, processors, packagers, and transporters,

connecting farmers to markets.

Types of Projects: Production, Manufacturing,

Industrialization, Servicing, Processing and Storage,

Distribution, Marketing, and Transportation

Access to Finance to Improve Agriculture-Based

Livelihoods. Access to nancial services, such as

local banks and micronance, is a critical source

of resilience for the agriculture sector. Insurance

products promote agricultural development and

protect farmers and agribusinesses from market

shocks, such as the COVID-19 pandemic, which

constrain commercial credit and threaten food

security. DFC provides critical access to nancing

to improve livelihoods and incomes for poor, rural

communities to allow them to buy nutritious foods,

one of the most direct and lasting way to improve

food security and nutrition. DFC can also invest in

companies and projects that leverage ntech to

help overcome structural barriers credit access and

blockchain to improve commodity and crop insurance

pricing. DFC can also look for opportunities to invest

in projects that improve land titling systems.

Types of Projects: Micronancing to Small Holder

Farmers and Agriculture-based SME/MSME, Fintech,

Blockchain, and Technical Assistance and Training to

Increase Production

and Connectivity

Improving Supply Chain

Resilience in Kenya’s

Fragmented Food

Distribution System

In Kenya, poor infrastructure and inecient

linkages between rural farmers and

urban produce vendors result in 30 to 40

percent of food being wasted. In 2020,

to strengthen food security in Kenya by

increasing farmers’ access to markets

and improving the agricultural supply

chain with cold storage, DFC made its rst

disbursement of its $5 million loan to Twiga

Foods, Ltd. DFC’s investment will empower

smallholder farmers and urban produce

vendors—the majority of whom are

women. Since 2014, Twiga has worked to

streamline Kenya’s fragmented, inecient

food distribution system. The company

purchases fresh produce from remote,

hard-to-reach farms across the country. It

then packages, stores, and distributes it to

urban produce vendors, who place orders

through Twiga’s digital sales platform.

To date, this system has connected and

increased incomes for over 17,000 farmers

and more than 8,000 produce vendors.

Enhancing Livelihoods of

Smallholder Dairy Farmers in

India

DFC committed up to $371,000 in technical

assistance to support Milk Mantra, which

sources milk from more than 60,000

smallholder farmers—many of whom are

women—to produce and sell dairy products

in eastern India. The technical assistance

is intended to enhance the impact of an

approved DFC loan to the project by sharing

the costs of services including farmer

training, cattle health services, and a digital

nancial services program designed to

empower women farmers.

DFC'S ROADMAP FOR IMPACT

Promoting Marine

Conservation with Innovative

Blue Bonds

In 2019, DFC, in coordination with The

Nature Conservancy, invested $250 million

and $100 million in political risk insurance

will support “blue bonds” that bolster

coastal economies in Kenya and Saint Lucia,

respectively. The projects will establish long-

term sources of funding for critical marine

conservation activities. The project involves

the restructuring of the governments’

sovereign debt and redirecting of a portion

of the loan payments to fund grants and to

capitalize an endowment fund for long-term

funding of conservation activities with the

goals of conserving and enhancing marine

and coastal ecosystems, strengthening

the governance and management of such

ecosystems, and creating resilient ecological

and human communities. The project

results in millions in debt savings for the

governments.

Sustainable Natural Resource Management.

Private sector investments where properly structured

can protect ecosystems and employ sustainable

natural resource management practices, promote

sustainable economic growth, reduce economic and

environmental risks, and help communities recover

more quickly from shocks. In LICs and LMICs, low-

income populations are typically more dependent

on natural resources, such as local water and food

supplies, for their health and livelihoods. These vital

resources are becoming increasingly degraded and

threatened due to poor water and land use practices,

increasing soil erosion, overgrazing, deforestation,

and over-shing. Degradation and misuse of these

resources impairs economic growth and shrinks

livelihood options. Restoring degraded resources

through sustainable resource management practices

can increase productivity and strengthen resilience.

DFC will prioritize projects that safeguard, restore,

and increase the productivity of natural resources.

Types of Projects: Sustainable Forestry, Sustainable

Fisheries and Aquaculture, Land Management, Soil

Management, Irrigation, Water Eciency, and Farmer-

Managed Natural Regeneration

DFC'S ROADMAP FOR IMPACT

Innovative Agriculture and Supply Chain

Technologies. Mechanized farming, post-harvest

storage, and manufacturing processes, and power

provision underpin the agriculture sector and global

commodity markets. DFC can increase productivity

and promote greater economic development

by leveraging existing technologies to improve

production, storage and processing and supporting

innovations in production methods, ranging from new

crop varieties to improved manufacturing facilities,

as well as technologies that create more ecient and

transparent supply chains. For example, over the last

decade, digital technologies have connected buyers

and sellers across the globe, reduced inequalities

in access to critical information and knowledge,

and enabled more dynamic resource planning and

management

. DFC will focus primarily on innovative

technologies and business models that address

market failures in less developed countries and

improve productivity in growing regional or global

markets.

Types of Projects: Innovating Across Crop Production,

Livestock Health, Soil/Water Management,

Mechanization of Manufacturing, and Digital Supply

Chain Management Technology (e.g., Sourcing,

Tracking, Post-harvest Storage, Market Information,

Connectivity and Compliance

Innovative Direct-to-Consumer

E-Commerce Solutions

Strengthen Food Value Chains

in India

In 2020, DFC approved a $20 million

direct equity investment in FreshToHome,

a Bangalore, India-based e-commerce

company that sells fresh sh, chicken and

other meats, and vegetables across major

metropolitan areas in India. The investment

will improve the perishable food value

chain, create one of the country’s largest

cold chain infrastructure systems and

thousands of jobs, and improve health

and safety standards. FreshToHome

reaches farmers using a proprietary mobile

commodities exchange technology that

disintermediates India’s existing, archaic

sh supply chain to source sh directly from

over 1,500 shermen across 125 coastal

areas. The investment will support scaling

of low-income and microentrepreneurs’

farming operations and the expansion

of the vertically integrated cold-chain

storage infrastructure system developed by

FreshToHome. This system eliminates the

need for multiple middlemen, while ensuring

the product is handled according to industry

best practices and waste is kept to a fraction

of the estimated industry average.

DFC'S ROADMAP FOR IMPACT

agricultural-led growth, opportunities for partnership,

and host government commitment.

These countries

include: Bangladesh, Ethiopia, Ghana, Guatemala,

Honduras, Kenya, Mali, Nepal, Niger, Nigeria,

Senegal, and Uganda.

Through consideration of

USAID country plans and broader coordination with

USAID, MCC, USDA and other USG Departments and

Agencies involved in agricultural development, DFC

can further rene its focus areas and investment

strategy in these markets. In addition, DFC will

seek broadly to collaborate more closely with USG

partners to improve deal sourcing, adopt risk-sharing

practices, and support private sector led economic

growth in these countries. Furthermore, In investing

in projects that promote nutrition, food security and

robust agriculture value chains, DFC will deliberately

prioritize the quality of development impact and

the quantity of projects over the dollar size of each

investments. DFC will work on a regional level,

focusing primarily on systems and technologies that

improve food security and supply chains throughout

the Indo-Pacic, sub-Saharan Africa, and Latin

America and the Caribbean.

Investment Opportunities

DFC’s current active portfolio exposure in the food

security and agricutlure sector is approximately $2

billion. Most active DFC projects include financing for

microfinance and other bank and non-bank financial

institutions to support smallholder farmers, farming

cooperatives and agriculture-based SMEs/MSMEs for

working capital for various inputs (seeds, fertilizer,

etc.), agribusiness equipment and leasing, services

and agricultural training. DFC’s current portfolio

includes projects focused on farming and shing,

food processing and manufacturing, warehousing

and storage, transportation and cold storage, food

distribution, retail supermarkets, digital technologies

and mobile payments, marine conservation,

agricultural exports and other parts of the agriculture

and commodity supply chain.

DFC’s pipeline includes diverse projects including

nancing for ecosystem restoration, agroforestry,

rural energy, agriculture SME lending, expansion of

marine facilities at an existing sh farm in Vietnam,

micronance to women in rural areas, agriculture

value chain nancing, loans to associations,

cooperatives and farmers for cassava and dairy

production, seed production and distribution,

expansion of a carbonated beverage bottling plant's

capacity, a table grape farm and a cashew processing

facility.

Most individuals without access to food and reliable

supply chains reside in LICs and LMICs, and DFC

will prioritize increasing its investments in these

countries. In addition, DFC has identied several

areas where investment opportunities exist through

greater collaboration with USAID and other USG

partners, as DFC plays a key role in advancing the

USG’s Global Food Security Act’s goals. The U.S.

Global Food Security Strategy and Feed the Future

Initiative have identied priority countries based on a

series of criteria, including level of need, potential for

Eurasia

Middle-East

Indo-Pacific

Latin America

Sub-Saharan Africa

Multiple Countries

Sector: Food Security

Number of Committed Projects

LIC LMIC UMIC HIC Multiple/ Regional

DFC'S ROADMAP FOR IMPACT

High-level Investment Targets and Development Goals

• Commit $500 million over 50 projects focused on food security and agriculture supply chains.

• Commit 75 percent of food security investments in LICs, LMICs, fragile states or Feed the

Future countries.

• Support at least 1 million small holder farmers.

Aspirational Milestones

• Apply a “nutrition lens” to all DFC investments.

• Promote innovative agriculture and supply chain technologies that will propel access to

nutritious foods and enhance eciency and resilience.

• Create resilience to supply chain shocks by supporting local agricultural SMEs, enhanced

storage, regional supply chains and market eciency.

• Promote resilience by supporting projects that utilize sustainable agriculture and resource

management practices.

• Target local job growth by supporting projects involving locally or regionally based companies.

• Target projects that increase access to nutrition.

• Leverage a blended nance tool that support the U.S. Global Food Security Strategy.

• Enhance global security by supporting projects that help transition farmers from growing illicit

to licit crops.

• Promote value addition through allied agro-industries, and consider agro-industry as a critical

wealth creating sector.

DFC'S ROADMAP FOR IMPACT

HEALTH

Healthcare provision is a vital component of any

society. As COVID-19 has laid bare, much of the

world’s healthcare infrastructure requires signicant

improvements to withstand current and future health

risks. An estimated 400 million of the world’s poorest

people still lack access to essential healthcare

services, reinforcing extreme poverty, premature

death, or disability. Lack of healthcare access is often

rooted in inadequate nancial resources to pay

for services. According to the World Bank, in 2015,

approximately 930 million people spent more than

10 percent of their household income on health care

expenditures and 210 million people spent more

than 25 percent

. These costs make it burdensome

for the average family to secure even basic health

services for their families. Meanwhile, on the supply

side, most LICs and LMICS are stymied by insucient

funding for product development; distribution

networks; vaccines, antibiotics or treatments that

meet international standards. This funding gap limits

the quantity and quality of health services and often

drives up costs in poorer communities. As a result,

many innovations do not obtain the capital required

to scale or access frontier markets.

DFC aims to improve the world’s healthcare

infrastructure by boosting innovation, addressing

supply chain failures, and supporting companies

that can bring new vaccines and treatments to

scale in developing countries. Through its Health

and Prosperity Initiative, DFC has committed to

investing $2 billion and catalyzing $5 billion in priority

areas across the health sector over the next three

years, in addition to its immediate responses to

COVID-19. DFC investments will seek to complement

other USG global health programs, such as

President's Emergency Plan for AIDS Relief (PEPFAR),

President's Malaria Initiative (PMI), and the Global

Security Health Agenda, by supporting investors who

struggle to attain traditional capital while serving

customers at the bottom of the pyramid.

Focus Areas

Resilience in Healthcare Systems and

Strengthening of Supply Chains. DFC recognizes

that strong health systems are critical to ensuring

the well-being of a population. DFC will continue to

invest in health systems strengthening to ensure

aordability, reliability, and delivery of health services

so that countries are more resilient and better

prepared to respond to and recover from future

pandemics and crises. DFC also will prioritize projects

that support communities that are vulnerable to

health challenges. DFC will help transform the way

global health has been nanced and further involve

the private sector to complement aid eorts; this

approach will promote sustainable investments

around preparedness and health care delivery.

Types of Projects: Supply Chains (including the

production and distribution of PPE, ventilators,

therapeutics, diagnostics, vaccines, and other medical

supplies), Innovative Care Delivery Systems, Medical

Technology and Devices; Healthcare Delivery; and

Digital Health

DFC aims to improve

the world’s healthcare

infrastructure by boosting

innovation, addressing

supply chain failures, and

supporting companies that

can bring new vaccines

and treatments to scale in

developing countries.

DFC'S ROADMAP FOR IMPACT

Response to the COVID-19 Pandemic.

Governments alone will be unable to solve the

challenges the COVID-19 pandemic presents. DFC

is working with clients to advance solutions that

bolster health services and inject liquidity into

developing countries. DFC is also working with other

U.S. Government agencies, NGOs, foundations,

the private sector, and DFIs to bring liquidity to the

market, support companies impacted by the virus,

and promote new investment in global health,

safety, and economic sustainability. As outreach and

healthcare infrastructure are under pressure and

under-resourced, DFC can provide the necessary

capital to ensure companies can manufacture and

distribute life-saving equipment, therapeutic drugs,

and vaccines without delay. Through the DFC’s Health

and Prosperity Initiative, DFC is working to catalyze

private-sector investment in projects that strengthen

health resilience in developing countries, including

projects that address the challenges of COVID-19.

Types of Projects: Supply Chains (including the

production and distribution of PPE, ventilators,

therapeutics, diagnostics, vaccines, and other medical

supplies), Healthcare Infrastructure (e.g. of Clinics,

Hospitals, and Healthcare Centers), and Operations

and Quality Improvement Services

Increase Manufacturing of Diagnostics,

Therapeutics, and Vaccines. In LIC and LMIC

countries, weak drug supply chains lead to antibiotic

inaccessibility

. For example, in Uganda researchers

found that only 47 percent of the World Health

Organization’s essential medicines were procured

through a centralized system, leading to widespread

shortages. Improving the supply chain can greatly

improve market access, saving lives in the process.

DFC’s investments in health system capacity will

prioritize supporting the healthcare supply chain to

expand the distribution of medical supplies, products,

and equipment. Furthermore, new and life-saving

treatments are necessary for priority diseases even

as the funding gap grows for antibiotics and vaccines.

This problem is further exacerbated because

DFC’s Health and

Prosperity Initiative

DFC is committed to strengthening

health resilience in developing countries.

Through its Health and Prosperity

Initiative, the Agency is working to

invest $2 billion in projects that bolster

health systems, support infrastructure

development, and expand access to

clean water, sanitation, and nutrition.

DFC is particularly focused on projects

that support the global response to the

COVID-19 pandemic, especially through

investment in health system capacity,

including supply chains that expand the

distribution of medical supplies, products,

and equipment. The Agency also will

prioritize projects that support countries

in Africa that are particularly vulnerable to

health challenges, as well as investments

that advance DFC’s 2X Women’s Initiative

by empowering women, who are often

disproportionately impacted by crises like

COVID-19. Under the initiative, DFC has

issued a call for proposals from private

sector entities seeking nancing for

investments in global health.

DFC'S ROADMAP FOR IMPACT

companies who create these products are less likely

to focus on the treatments most needed in LIC

and LMIC countries. DFC will explore opportunities

to partner with pharmaceutical and life science

companies to ensure aordable expansion into

emerging markets, particularly in LICs and LMICs. As

there are often high xed and long-term horizons

resulting in high up-front costs, DFC will work

with other USG agencies and partners to ensure

transparency, identify opportunities to co-invest in

innovation, provide technical assistance or de-risk

DFC investments for antibiotics and treatments

critical to LICs and LMICs.

Types of Projects: Supply Chain Investments

(including the production and distribution of PPE,

ventilators, therapeutics, diagnostics, vaccines,

medical supplies; distribution/warehouse; delivery;

and retail); Healthcare Delivery; Medical Devices;

Lending to SME, Life Sciences; and Pharmaceuticals

Advance Global Health Initiatives. DFC

investments will complement the Global Health

Security Agenda and other USG global health

programs such as PEPFAR and PMI. In particular,

DFC can make critical inroads in expanding access

to aordable and reliable health care services

across all levels of the health system, whether

through investments in projects that build hospitals

and health clinics or nancing funds that provide

loans to clinics in vulnerable parts of the world.

Access to aordable, quality primary healthcare

stabilizes economies, increases the overall health

of communities, and spurs development as

communities can focus on other needs. DFC’s role

is instrumental within the fuller network of USG and

Global initiatives, as DFC often lends credibility to new

providers or de-risks projects in LIC/LMIC regions —

laying the foundation for life-long good health for the

most vulnerable populations and lowering long-term

health expenditures in a county.

Types of Projects: Innovative Care Delivery Systems;

Healthcare Infrastructure; Operations and Quality

Improvement Services; Maternal and Child

Healthcare; Treatment of Acute malnutrition/ related

diseases; Specialty Services, Diagnostics; Health

Finance/Insurance; and Supply Chain

Investing in Maternal and

Child Health

DFC, through the Maternal Outcomes

Matter (MOMs) Initiative, is collaborating

with USAID, Merck, and Credit Suisse

to support investment in maternal and

child health in Africa and South Asia,

ensuring safe pregnancies and deliveries

while laying the foundation for lifelong

health. The initiative seeks to mobilize

up to $50 million to improve and expand

infrastructure, services, and access to care

in order to ensure healthy pregnancies

and safe deliveries. In January 2020,

the MOMs Initiative announced its rst

partnership with LifeBank, a medical

distribution company that uses data

and technology to help health workers

discover essential medical products

like blood and oxygen across Africa and

connects would-be donors to their local

blood banks. LifeBank medical dispatchers

can respond to orders 24/7 via motorcycle

in under 45 minutes. Blood is stored in

refrigerated boxes with Bluetooth-enabled

padlocks that only the intended recipient

can open. The company has moved more

than 18,000 pints between blood banks

and hospitals, saving over 4,400 lives in

the process.

DFC'S ROADMAP FOR IMPACT

Digital Health and Research and Development.

While digital management can increase eciency and

reduce costs, rms providing these services often

receive little startup capital as DFI and healthcare

nancing have focused primarily on infrastructure

and pharmaceuticals. Accordingly, DFC recognizes

that investments in IT and Digital Health have

the potential to solve the “last mile problem,” i.e.,

nancing innovations that help get critical drugs

and treatments to those who need it the most

. In

addition, DFC can invest further in key innovative

research and development and explore opportunities

to expand investment into genomics research and

development. The reason is simple: deeper analysis

of genetic variation can drive advancements in

medicine. Unfortunately, poor capacity building,

lack of dedicated infrastructure and insucient

expertise of healthcare professionals in LICS/LMICS

makes innovation in this area incredibly challenging

Eective genomic research in partnership with LIC/

LMIC countries can catalyze the creation of vaccines

and antibiotics best suited to the communities that

need it.

Types of Projects: Digital Health and Related IT

systems; Telemedicine, Innovative Care Delivery (e.g.

Drones); Online Health Sites; Mobile Healthcare

Platforms; Data Science Innovations; and Research

and Development.

DFC'S ROADMAP FOR IMPACT

Eurasia

Middle-East

Indo-Pacific

Latin America

Sub-Saharan Africa

Multiple

Sector: Health

Number of Committed Projects

LIC LMIC UMIC HIC Multiple

skeptical investors will receive a timely return on their

investment. Moreover, DFC will invest in the most

innovative companies in the above listed subsectors

likely using our existing portfolio for impact program

to make some of these highly developmental bets.

To accelerate investment in the healthcare sector,

DFC will utilize blended nance and partnerships with

private foundations, NGOs, and USG entities (e.g.,

USAID, Center for Disease Control, National Institute

of Health, etc.) to supplement its technical assistance

dollars and oset the positive subsidy often required

to nance riskier, developmental projects.

Investment Opportunities

DFC’s current portfolio exposure in health is around

$1.4 billion. A substantial number of projects are

focused on social services/ humanitarian services, the

result of DFC’s commitment to insure humanitarian

agencies (e.g., International Rescue Committee).

However, the largest proportion of DFC’s healthcare

investment is used to nance hospitals and clinics.

As of September 2020, DFC’s current healthcare

pipeline suggests there is room to grow. The pipeline,

of nearly $300 million, includes COVID-19 response

projects, construction of hospitals, and investments

in expanding access to affordable healthcare and

healthcare facilities.

As DFC uses its investment dollars to catalyze

innovation, it will focus on dual market innovators.

Dual market innovators create products and services

that focus on all regions. Dual market innovators

will oer state of the art/ high end services that

attract full price paying clients, using prots from

those clients to oset the more basic yet high-

quality services provided to lower paying patients.

The assumption behind this approach is that prots

from HIC regions can subsidize the costs associated

with serving LIC and LMIC markets; it also ensures

DFC'S ROADMAP FOR IMPACT

Measuring Success: High-level Investment Targets and Development

Goals by 2025

• Commit to $3 billion and catalyze $6 billion more from the private sector in priority areas

• Increase access to health care facilities by supporting 10 new hospitals and health clinics in

LICs, LMICs, and underserved communities in UMICs.

• Provide healthcare services to at least 2 million people.

Aspirational Milestones

• Increase of access to new and life-saving treatments for priority diseases.

• Increase the number of patient consultations, procedures and surgeries conducted.

• Improve research related to critical drugs and treatments.

• Increase the number of projects that align with our sub-sector focus (digital/IT,

pharmaceuticals/life sciences etc.).

• Increase the dollar amount mobilized for healthcare related projects in partnership with 1)

USG; 2) private sector; 3 foundations/NGOs.

• Increase the number of healthcare related projects with 2X impact and eects on girls and

women (e.g. declining pregnancy mortality rates) where available.

DFC'S ROADMAP FOR IMPACT

WATER, SANITATION, AND HYGIENE

The COVID-19 pandemic, rapid population growth,

poor waste management capacity, and pollution pose

mounting challenges for less developed countries

to address the water and sanitation issues. Today,

roughly 2.2 billion people globally do not have

access to safely managed drinking water and over

4.2 billion people lack access to safely managed

sanitation facilities, such as toilets or latrines. 40

percent of the world’s population, or 3 billion people,

do not have a handwashing facility with water and

soap at home, including nearly 75 percent of people

in less developed countries

. Inadequate WASH

resources expose individuals to greater health risks

and healthcare costs, while also aecting countries

political and economic stability, agriculture and food

security. Water and sanitation services are also

essential to the operations of modern economies.

With 66 percent of the global population expected

to be living in cities by 2050, investments in water

and sanitation services are essential to maximizing

productivity and economic outputs in these cities.

The USG Global Water Strategy prioritizes access to

safe drinking water and sanitation, improved hygiene

practices, water resources management, cooperation

on shared waters, and stronger water governance

and nancing. DFC will focus on projects with

commercially-oriented service providers with ecient

revenue generation and moderate creditworthiness.

Currently, most of these opportunities are in urban

areas, with large scale operations. These projects are

likely to be highly developmental, based on the DFC’s

current portfolio in the WASH sector. DFC is generally

constrained from directly nancing publicly-owned

water utilities and will, therefore, explore PPPs,

private tenders and indirect support of water projects

through nancing facilities or sector-specic or

multi-sectoral funds. The Agency can mobilize private

capital to support development eorts by facilitating

PPPs or private tenders with utilities interested in

engaging with the private sector. This may include

backing bankable water projects that supply

commercial and industrial customers, incorporate

sewerage, fecal sludge or wastewater treatment, or

promote water eciency and ecient operations.

DFC will continue to mobilize private sector

investments in water, sanitation, and hygiene

infrastructure, improvements in service provider

performance, and nancing facilities that leverage

domestic private capital and public funds in order to

create more resilient communities.

Focus Areas

Access to Safe Drinking Water. In some cases,

PPPs and private tenders can help state operators

provide clean water more quickly and eciently.

In these instances, DFC can provide nancing for

water infrastructure systems, including desalination

plants, water treatment facilities, pipelines, and water

storage. DFC can also support the provision of non-

utility water services, such as bottling and vending

machines, that bring drinking water to underserved

populations in innovative ways. In addition, there

may be opportunities for DFC to help mitigate

intranational or international disputes related to

water resources by providing irrigation resources or

With 66 percent of the global

population expected to

be living in cities by 2050,

investments in water and

sanitation services are

essential to maximizing

productivity and economic

outputs in these cities.

DFC'S ROADMAP FOR IMPACT

introducing wastewater management technologies.

All DFC water projects are strenuously planned and

monitored to ensure they meet U.S. water standards.

Types of Projects: Desalination, Water Treatment,

Pipelines, Water Storage, Bottling, and Vending

Machines

Water for Livelihoods. Water is a critical input to

other sectors related to economic development.

In particular, the food sector, which is the largest

income-generating industry for the base of the

pyramid, relies on water resources for agricultural

production. DFC can help boost economic

development through water projects that are related

to the food sector, including irrigation systems,

livestock operations, agribusiness water treatment

and storage, sheries and aquaculture projects.

DFC can also support the introduction of new

technologies that improve water management for

agricultural use, such as water measurement and

drought prediction tools. Work that DFC supports in

terms of clean marine environments are also notable

as critical to livelihoods DFC can identify projects

in these areas through coordination with global

initiatives like Securing Water for Food, Feed the

Future, and Powering Agriculture and cooperation

with entities including Water.org, the Nature

Conservancy and Water Equity. Manufacturing,

energy, and other commercial and industry

development all require reliable water services both

for their operations and employees. Finally, water-

ecient appliances, water meters and housing-

related water systems also present opportunities for

DFC investment.

Types of Projects: Irrigation, Water Eciency,

Commercial and Industrial Development, Pipelines,

and Water Storage

Expanding Access to Clean

Water in El Salvador

El Salvador faces chronic water shortages

resulting from delayed and insucient

investment in infrastructure. The COVID-19

pandemic has exacerbated these challenges,

with stay-at-home orders making it harder

to travel to a source of clean water, even

as hand washing and sanitation became

more critical. DFC’s nancing to Azure

Source Capital, a special lending vehicle,

is supporting loans to small cities and

rural communities for investment in new

and rehabilitated water pumps, pipelines,

and storage tanks. Azure aims to improve

water supply for 300,000 people and is

combining nancial support with training so

local residents can operate their own water

systems. Additional emergency projects

Azure adopted in response to the COVID-19

pandemic have provided support to help

restore water service to about 10,000

families and 11 community and municipal

water service providers. Catholic Relief

Services and impact investor Total Impact

Capital also are sponsors of the project.

DFC'S ROADMAP FOR IMPACT

Sanitation and Hygiene Services. Lack of

sanitation and poor hygiene contribute to the

transmission of deadly diseases and exposes

individuals to preventable health risks. DFC can

explore opportunities to invest in commercial

sanitation technologies and incorporate sanitation

and hygiene into bankable projects in other

development sectors. For example, inadequate

sanitation is pervasive in healthcare facilities in less

developed countries, where more than 15 percent

of patients develop a new infection during their stay

due in part to limited water and sanitation services.

More broadly, in the COVID-19 era, commercial and

industrial facilities will require improved sanitation

and hygiene facilities to protect their employees and

ght the spread of the disease. DFC has potential

to improve water access in its healthcare, housing,

industrial and commercial projects.

Types of Projects: Sanitation and Hygiene Facilities,

Sanitation and Hygiene Technologies, Hospitals and

Healthcare Clinics, Schools, and Commercial and

Industrial Development

Water Resources Management. If current

population growth, water use, and climate trends

continue, estimates suggest that the world will face

a 40 percent shortfall between forecasted water

demand and available supply of water by 2030.

Through its Oceans and Plastics Initiative and

related investments in pollution remediation, waste

management, water eciency technologies, and

water conservation, DFC can help countries cope with

rising pressures on water resources.

Types of Projects: Pollution Remediation, Water

Eciency, Waste Management (e.g., Recycling, Solid

Waste Management), Nature-Based Water Solutions

(e.g., Wetlands Restoration, Inltration Ponds), and

Water Treatment, Desalination

Investment Opportunities

DFC’s active portfolio consists of nearly $500 million

of water, sanitation, and hygiene investments,

contributing primarily to projects located in LICs/

LMICs in the Indo-Pacic, Africa, and Latin America

regions. These projects involve direct nancing of

infrastructure, such as desalination plants, as well as

indirect support of water projects through nancial

intermediaries that are lending to water development

initiatives.

DFC’s pipeline in the WASH sector, as of September

2020, reects investments mainly in Africa and

the Indo-Pacic region. DFC’s investment support

for these projects would be around $435 million;

however, it is important to note that only portions

of some agricultural or MSME funds, which have a

broader focus, are likely to be allocated to projects

that are specically water or sanitation related.

As part of its Global Water Strategy, the USG

identied high-priority countries where needs and

opportunities for water development are greatest

and where engagement can best protect U.S.

national security interests. These countries include:

Afghanistan, Democratic Republic of the Congo,

Ethiopia, Ghana, Haiti, India, Indonesia, Jordan, Kenya,

Lebanon, Liberia, Madagascar, Mali, Mozambique,

Nigeria, Nepal, Senegal, South Sudan, Tanzania, and

Uganda.

The USAID Water and Development Plan

Eurasia

Middle-East

Indo-Pacific

Latin America

Sub-Saharan Africa

Multiple

Sector: WASH

Number of Commited Projects

LIC LMIC UMIC HIC Multiple

DFC'S ROADMAP FOR IMPACT

includes summary overviews of each high-priority

country plan. Through consideration of country plans

and broader coordination with USAID, MCC, and

other USG Departments and agencies involved in

water and sanitation development, DFC can further

rene its focus areas and investment strategy in

these markets.

DFC aims to leverage and internationalize

U.S. domestic water sector knowledge and

approaches when appropriate, and where such

internationalization might serve as a foundation for

DFC’s eorts. For example, DFC may explore technical

assistance collaborations with the U.S. Environmental

Protection Agency (EPA) to help emerging economies

adapt elements of U.S. water infrastructure nance

mechanisms. Internationalization of the U.S. State

Revolving Fund and federal loan programs, designed

for nancing WASH infrastructure, could support

DFC investment pathways by helping emerging

economies establish eective and sustainable

nancing mechanisms. Additionally, DFC may explore

opportunities to collaborate with EPA on water reuse

technical assistance.

In narrowing down target markets for water-related

projects, DFC will also weigh the potential for private

investment. Countries that are already moving toward

some level of privatization in the water sector, or that

are open to diversication of water and sanitation

systems, are more likely to solicit private sector

engagement. For example, Algeria has welcomed

private sector investment in desalination projects,

and Jordan has permitted private investment in

a water distribution system. Countries where the

private sector is actively developing new water-

related technologies or water eciency projects

and countries focused on water scarcity or water

pollution are likely to present compelling investment

opportunities.

Measuring Success: High-level Investment Targets and Development

Goals by 2025

• Commit to at least 25 WASH projects in LICs and LMICs.

• Commit to at least $250 million in WASH projects globally.

• Increase access to reliable, potable water for at least 1 million customers through nancing

of desalination, potable water, water utilities, or other clean water projects.

Aspirational Milestones

• Improve the quality of drinking water.

• Improve hygiene and sanitation to increase the number of girls receiving an education be-

cause they are not needed for water collection or because improved hygiene and sanitation

makes attending easier.

• Support the development of additional MSMEs owned or managed by women which are

possible as a result of water accessibility.

• Save water through water ecient or water measurement technologies.

DFC'S ROADMAP FOR IMPACT

CAPABILITIES AND RESOURCES

process of increasing the count of sta overseas

to ten (to be placed in Europe, Africa and the Indo-

Pacic region) which will allow DFC to leverage new

regional footprints.

Small client base. Due to limited bandwidth, the

majority of OPIC’s projects were with the same

clients. Because OPIC exclusively provided nancing

for transactions with some U.S. nexus, DFC did

not inherit many legacy relationships with active

foreign partners or local companies in developing

countries. This limits DFC’s ability to support a

dynamic local business sector. Local rms create

innovations in response to their communities’

needs, foster tax generation, strengthen local supply

chains and advocate for changes in support of small

businesses. DFC’s historically small, domestic client

base unnecessarily caps the breadth and quality of

projects in its pipeline, limiting the Agency’s ability to

engage in regions and sectors where existing clients

do not have a footprint.

Overlapping development-related coordination

duties. DFC’s CDO is responsible for ensuring

that the Agency meets its development mandate

and leading development-related coordination

with other U.S. development agencies. However,

DFC’s coordination eorts currently span multiple

oces outside of the CDO, including the Oce of

Development Policy (ODP) (development impact

evaluation, monitoring and evaluation), Oce of

Development Credit (ODC) (coordination with

USAID missions), and Oce of Strategic Initiatives

(OSI) (business development). Although specic

coordination duties vary across these units, the

diusion of DFC’s development-related coordination

activities has the potential to create inconsistent

and/or duplicative processes and objectives in the

absence of more formal reporting lanes and policies.

Improvements to internal coordination will need to

be managed going forward.

Achieving DFC’s investment targets and development

goals will require the Agency to build or acquire

capabilities and resources in several areas. These

requirements include some sector-specic needs;

however, they are primarily DFC-wide.

In recent years, OPIC has

made commitments totaling

approximately $4 billion

of exposure per year using

between $22 and $24 million

of subsidy.

The identication of capability and resource

requirements involved consideration of existing

operational constraints that could limit DFC’s

development impact if left unaddressed. Several

of these constraints could be mitigated in part

by improving internal operations and external

coordination in a manner that brings the entire suite

of USG development capabilities to bear. Others will

require more fundamental shifts in how DFC and

the USG approach strategic, budgetary, and risk

management decisions. To address these constraints

and better enable the execution of the Roadmap,

DFC will prioritize the following mission-critical

capabilities: Internal Collaboration; Interagency

Coordination; Business Development; Financial

Innovation; and Monitoring and Evaluation.

The following constraints are identied:

Limited sta. Relative to some DFIs and IFIs, DFC

has a small and centralized workforce. DFC currently

has less than 500 employees, and roughly 98 percent

of the Agency’s sta are based out of its Washington,

D.C. headquarters. As a reference, the closest DFI in

exposure has roughly 4x as many staff and half the

exposure as DFC; their staff is predominantly located

in LICs and LMICs . However, DFC is in the

DFC'S ROADMAP FOR IMPACT

Limited Insight into Development Impact at

the Portfolio Level. Historically, OPIC relied on

self-reporting from clients and site visits to a subset

of its active projects to evaluate its development

impact. To operationalize DFC’s increased emphasis

on development outcomes, the Agency will need to

signicantly bolster its M&E capabilities. Generating

more detailed and precise ex ante data on projects’

development impact will depend on improvements

to, and related increased funding for the quality and

frequency of DFC’s data collection and reporting

processes.

Limited subsidy allocation. Under the Federal

Credit Reform Act, DFC investments are scored using

a subsidy model, which assigns a subsidy cost to

each transaction based on the estimated cost to the

government of extending or guaranteeing credit. The

subsidy cost is what U.S. agencies must pay to access

coverage of the transaction from the U.S. Treasury

(like the premium paid for an insurance policy).

For FY 2020, DFC was appropriated $150 million of

budget authority for subsidy for equity nancing and

$30 million for subsidy debt nancing and technical

assistance. Based on historical subsidy costs for OPIC

and DCA, this budget severely limits DFC’s ability to

invest in developmental projects. In recent years,

OPIC has made commitments totaling approximately

$4 billion of exposure per year using between $22

and $24 million of subsidy. By comparison, USAID’s

DCA typically required more subsidy per dollar

of exposure due to the nature of its investments

in less developed countries. In FY 2019, DCA had

roughly $414 million of exposure on $935 million

of potential credit mobilized utilizing $15 million in

subsidy. Therefore, the combined subsidy costs from

OPIC and DCA in previous years are already greater

than DFC’s FY 2020 subsidy allocation, leaving little

room for the Agency to shift its focus to projects

less developed countries. Additionally, DFC’s subsidy

constraints have been exacerbated by the COVID-19

pandemic, which has increased credit risks across

the board.

Given DFC’s limited appropriation for subsidy to

support higher risk transactions, there is a limit

to how many projects DFC can support in LICs

and LMICs. Often, when transactions are priced in

such a way as to reduce or eliminate the subsidy

cost, the burden of those increased fees can end

up being passed on to vulnerable populations.

The internal “competition” for the limited available

subsidy for transactions can create a disincentive for

DFC business lines to invest their time in pursuing

transactions in LICs and LMICs. In addition, with

a $50 million transfer limit from USAID and the

State Department, DFC is further constrained from

supporting a large number of transactions in LICs and

LMICs that USAID and State may wish to prioritize

with their own resources. To address this issue and

ensure compliance with the BUILD Act’s direction to

prioritize support for transactions in LICs and LMICs,

additional appropriations are required and have

been requested for FY 2021 and FY 2022.

Limited Framework to Pursue Risker Deals.

Risker projects in LICs and LMICs often require more

time and resources to develop since they have a high

subsidy cost, are dicult to underwrite and are hard

to monitor and evaluate. To address this constraint,

DFC must develop further incentives, resources,

and risk appetite to drive deals in LICs and LMICs in

addition to coordinating with the interagency.

Limited Resources to Finance Local Currency

Loans. DFIs are increasingly using local currency

nancing to help developing countries reduce

unsustainable hard currency debt burdens and

lower foreign exchange risk for their partners. Since

local businesses in developing countries often don’t

have access to a steady stream of foreign currency,

currency hedging instruments are either prohibitively

expensive or simply unavailable given the high

likelihood that their local currency will depreciate

against the dollar over time.

Unlike its predecessor, DFC is authorized to make

local currency loans and guarantees to non-U.S.

DFC'S ROADMAP FOR IMPACT

partners when there is a strategic policy rationale

for doing so, making local currency solutions a

more important component of the Agency’s toolkit.

However, all local currency lending requires Board

approval regardless of the size of the transaction.

This requirement can slow down the speed of

even small transactions, which tend to be more

common in LICs and LMICs. Local currency lending

also has a high subsidy cost given that the USG is

assuming foreign currency depreciation risk over

an extended period of time instead of passing that

risk on to the customer. DFC has a limited history

with local currency nancing and does not have

adequate funding to support local currency lending

at scale. Solving this issue in a way that will make U.S.

investment more competitive and local investments

more developmentally sustainable will require

additional appropriations. Even the development of

new currency hedging instruments will have a high

cost- both in time and expert resources.

INTERNAL COLLABORATION

The CDO oce will work with OSI and the business

lines to drive new deal ow in priority sectors,

improve internal business processes, and ensure

that all internal and external partners are working

to achieve DFC’s development goals. The CDO, in

consultation with OSI, the business lines, and the

CEO, will designate an Agency lead to coordinate

development eorts for each sector and thematic

area to drive strategic DFC coordination and

collaboration forward.

DFC'S ROADMAP FOR IMPACT

DFC will help facilitate a more holistic approach to

the USG’s development activities, from policy and

planning initiatives to project development and

M&E, through ongoing coordination with other

USG Departments and agencies. DFC will seek to

establish more formal relationships with other

USG Departments and agencies, when relevant, to

ensure that there is greater cross-fertilization on

development initiatives. These eorts will include

long-term, bi-directional detail programs that enable

agencies to share their expertise and develop

a deeper understanding of the tools that each

agency oers. For example, DFC is in the process

of implementing a Foreign Service Development

Finance Fellows program, in coordination with USAID

and State, which will bring USAID and State Foreign

Service Ocers to DFC for a long-term assignment

and training to prepare them to support DFC deal

origination while positioned in the eld at a post of

strategic importance.

Development Finance Coordination Group

(DFCG). DFC’s DFCG is an interagency technical

group consisted of 16 USG Departments and

Agencies that has the goal of helping DFC and the

USG: (1) operationalize interagency tools designed

to increase the quantity and quality of USG-backed

development investments and (2) provide input and

identify opportunities for collaboration on DFC's

Development and Sectoral Strategies (Appendix B).

Development Advisory Council (DAC). DFC’s

DAC, established under the BUILD Act, is charged

with providing the Board with guidance on how DFC

can best comply with its development mandate. In

this capacity, the DAC will provide the Board and

the Agency with advice regarding the execution of

DFC’s Roadmap for Impact, including implementation

challenges and opportunities. The DAC comprises

nine members who broadly represent non-

governmental organizations, think tanks, advocacy

organizations, foundations, and other institutions

engaged in international development (Appendix C).

Interagency and other ad hoc Field Presence.

DFC currently relies heavily on the global footprint of

U.S. embassies to help originate deals and monitor

projects. DFC coordinates with the Departments of

State and Commerce, as well as USAID, to ensure

that Embassy Deal Teams include USAID’s designated

DFC liaisons at each overseas USAID mission, to

compensate for DFC’s limited presence in the eld.

Under this arrangement, DFC will solicit the support

of U.S. embassy personnel to build relationships with

local companies and identify potential investment

opportunities. The rollout of this model involves:

(1) educating and training embassy teams on DFC’s

products and eligibility criteria; (2) implementing

a process to share information when a deal is

identied; (3) tracking deals from lead to project

INTERAGENCY COORDINATION

DFC currently relies heavily

on the global footprint of U.S.

embassies to help originate

deals and monitor projects.

DFC coordinates with the

Departments of State and

Commerce, as well as USAID,

to ensure that Embassy

Deal Teams include USAID’s

designated DFC liaisons at

each overseas USAID mission,

to compensate for DFC’s

limited presence in the eld.

DFC'S ROADMAP FOR IMPACT

approval; and (4) reporting on the success of leads to

create a positive feedback loop.

In addition, the Department of State has provided

funding to support a limited overseas presence of

DFC contractor personnel in Africa to help support

DFC’s business development eorts. DFC is looking at

ways to replicate this model to ensure that individuals

with appropriate expertise are both sourcing and

screening DFC-supported transactions.

Interagency Regional Briengs. DFC coordinates

regular Assistant Secretary/Assistant Administrator-

level briengs with the State Department and USAID

to discuss DFC’s deal pipeline and potential areas of

collaboration. DFC utilizes the briengs to discuss

the forecasted developmental impact of its portfolio,

opportunities for State and USAID ocers overseas

to help advance DFC’s priorities, and solutions

to development and foreign policy challenges in

markets where DFC is considering investments. DFC

also participates in the regional deal team meetings

hosted by the Department of Commerce.

Education and Training Sessions. DFC has

developed a series of learning modules, online

tools, and developmental details to teach other USG

agencies about DFC products and services. These

materials are available for re-use by internal DFC sta

in onboarding and training.

Trade Coordination. DFC will consider how

it might seek to leverage and reinforce U.S.

free trade agreements (FTAs) as pathways for

catalyzing investment in specic sectors. Among

other approaches, DFC will work with the USG

interagency (the Oce of the United States Trade

Representative Commerce, State, Treasury, EPA

and others) to explore and identify opportunities

during development and implementation of FTAs.

DFC will continue to engage in the Trade Promotion

Coordinating Committee Trade Ocer training

program and in training embassy deal team through

DC Central.

DFC'S ROADMAP FOR IMPACT

CDO will assume an active role in identifying and

building relationships with the private sector and

other external partners that are engaged in DFC’s

priority Development Sectors. The CDO’s relationship

management activities will be complementary

to existing business development eorts,

focusing primarily on partnership opportunities

in less developed countries that align with USG

development and foreign policy goals and where

DFC’s existing networks are limited. DFC will enhance

its collaboration with USAID with respect to business

development, as set forth in the BUILD Act.

Private Sector. The BUILD Act provides DFC with

additional operational exibilities that impact the

scope of its business development activities, including

the ability to work with non-US partners, oer

local currency loans, and provide equity nancing.

Although DFC will maintain a preference for U.S.

investments, these new requirements and tools

enable the Agency to engage with local businesses

and international companies who want to invest

in LICS and LMICS. A key driver of DFC’s Roadmap

for Impact’s success will be the ability to increase

business development in host countries and with

international investors.

DFC remains committed to prioritizing transactions

that involve U.S. investors, with a renewed focus

on identifying opportunities for U.S. small and

medium enterprises. In addition to prioritizing work

with U.S. investors, DFC will seek out relationships

with local companies in less developed countries,

highly developmental partners with innovative

product oerings and business models, and foreign

companies that align with DFC’s development goals

and are active in markets where U.S. companies

do not have a signicant presence or competitive

potential.

DFC also continues to explore options for increasing

its overseas presence in order to help identify viable

deal prospects, cultivate new business relationships,

and to help train U.S. embassy employees worldwide

on the use of DFC tools.

Public Outreach. DFC will take a more proactive

approach to educating private companies and the

development community, which includes local civil

society organizations, in multiple languages on its

available tools, selection criteria, and processes.

New tools could bring an inux of clients, which

would require DFC to scale up its capacity to review

proposals and weed out projects not eligible for

DFC support. DFC could use eld sta from other

USG agencies to help screen potential investments

BUSINESS DEVELOPMENT

DFC aims to expand and diversify

DFC's client base by adding 15 new

clients each year and targeting 30

percent of all clients to be local or

regionally based.

New tools could bring an

inux of clients, which would

require DFC to scale up its

capacity to review proposals

and weed out projects not

eligible for DFC support. DFC

could use eld sta from

other USG agencies to help

screen potential investments

originating in foreign

countries.

DFC'S ROADMAP FOR IMPACT

originating in foreign countries. In addition, one of

the DFC’s goals is to engage and support private

sector entities, with limited history or experience in

investing in emerging markets, to explore nancing

transactions in less-developed countries. CDO will

convene sessions to introduce both U.S. and non-US

private sector companies and institutional investors

to DFC product oerings and services, with a focus on

investors that are committed to development impact.

DFIs, IFIs, Foundations, NGOs, and Chambers of

Commerce, and Trade/Business Associations.

CDO will work with OSI and line departments to

expand DFC’s relationships with liked-minded

partners. Strategic relationships with other DFIs

and IFIs can help DFC build its pipeline, pursue

co-nancing opportunities, and take part in shared

due diligence and monitoring. Notably, DFC’s equity

authority will enable the Agency to participate in

DFI- and IFI-backed equity funds that invest in LICS

and LMICs. DFC could also consider opportunities

to share sta or consultants in the eld with these

organizations to encourage greater collaboration.

Furthermore, DFC will support more strategic inter-

DFI coordination and collaboration. In addition

to DFIs and IFIs, DFC will also foster relationships

with global, regional and local foundations, NGOs,

chambers of commerce, and trade or business

associations that can connect DFC to networks

of non-U.S. clients, provide critical feedback on

operations and policy to improve development

eectiveness, and open up markets that were not

previously available to OPIC.

DFC'S ROADMAP FOR IMPACT

DFC’s limited subsidy budget requires that the

Agency explore innovative nancing solutions to

grow its portfolio in LICs and LMICs and invest

in new technologies. DFC will collaborate with its

interagency partners to design transaction structures

and tools that help all parties advance their common

development goals. At a minimum, these solutions

will consist of scalable blended nance models

and enhancements to DFC’s local currency lending

capabilities.

Blended Finance. DFC will work with other USG

agencies and partners (e.g., foundations) to create

and launch blended nancing tools (e.g., USAID and

Millennium Challenge Corporation (MCC) grants

accompanying DFC nancing) that allow it to take on

greater risk and support more innovative projects.

For example, DFC may develop an “Equity for Impact”

tool that would promote small equity investments or

a small loan program in strategic sectors in LICs and

LMICs when de-risked with grant funding from USAID,

MCC, or the U.S. African Development Foundation

for technical assistance or rst loss. DFC and MCC

also are working together on the American Catalyst

Facility for Development, which would establish a

pool of funding of up to 15 percent of MCC’s funding

in a compact or threshold country (not to exceed

$50 million) to support joint investments. These

types of blended nance transactions would make

projects bankable in dicult markets more bankable

and potentially crowd-in other sources of nancing

that would not have otherwise considered investing.

Blended nance presents DFC and its partner

agencies with a signicant opportunity to expand

their reach in LICs and LMICs, optimize risk-sharing,

and, ultimately, increase the USG’s development

impact.

Local Currency Tool. Given DFC’s limited capacity

and funding availability to support local currency

lending as described in the constraints above, the

Agency will continue to explore opportunities for

collaboration with other USG agencies (e.g., USAID

and MCC) to identify potential funding sources and

tools to help the USG oer local currency lending to

clients in developing countries.

FINANCIAL INNOVATION

DFC and MCC also are

working together on the

American Catalyst Facility for

Development, which would

establish a pool of funding

of up to 15 percent of MCC’s

funding in a compact or

threshold country (not to

exceed $50 million) to support

joint investments.

DFC'S ROADMAP FOR IMPACT

will allow DFC access to local expertise and

relationships with the host country, bolstering our

ability to monitor and evaluate more projects and

better inform our peers of the work the agency is

conducting around the world.

New Tools and Platforms: DFC will leverage

technology solutions to position itself to monitor

more projects than ever before. By collecting better

baseline data from the onset of project nancing to

a more robust annual data collection strategy, the

monitoring and evaluation program allows DFC to

strategically send sta to the projects that need it

most.

Project Performance Evaluations. DFC will

conduct project performance evaluations of selected

projects for development impact with the aim to

strengthen accountability and learning for evidence-

based decision making that will improve development

results.

Accountability. DFC, through its independent Oce

of Accountability, addresses concerns, complaints,

or conicts about environmental or social issues

that may arise around DFC-supported projects. The

oce provides project-aected communities, project

sponsors, and project workers an opportunity to have

concerns independently reviewed and addressed.

In providing its services, the oce complements

DFC’s mission as a nancial institution that

promotes environmentally and socially-sustainable

development.

MONITORING AND EVALUATION

The BUILD Act calls for modernizing OPIC’s

monitoring and evaluation (M&E) framework

to appropriately measure the developmental

performance of the new DFC’s portfolio, including

the replacement of OPIC’s development impact

measurement system, Impact Quotient (IQ). The

system sets new standards and methods for ensuring

accurate developmental performance of DFC’s

portfolio—including the measurement of projected

and ex-post development impact of a project—and

information necessary to comply with the annual

reporting requirements.

By collecting better baseline

data from the onset of

project nancing to a more

robust annual data collection

strategy, the monitoring and

evaluation program allows

DFC to strategically send sta

to the projects that need it

most.

Leverage Interagency Field Presence. In addition

to DFC’s new M&E approach, DFC will capitalize

on the global presence of the USG through other

agencies, namely the Department of State, USAID,

MCC, the U.S. Commercial Service and USDA’s

Foreign Agriculture Service. This cooperation

DFC'S ROADMAP FOR IMPACT

CONCLUSION

DFC's investments in emerging markets are driving

economic growth, creating stability, and improving

livelihoods. DFC will operationalize the Roadmap

for Impact by embedding its dened priorities

within the Agency’s internal systems and processes,

collaborating with USG and external partners to

achieve shared development goals, and seeking out

the capabilities and resources required to maximize

DFC’s global development impact. DFC will continue

to place particular emphasis on countries that

are taking steps to promote free and fair markets,

the rule of law, transparency and individual rights.

Furthermore, DFC will work with partners that

advance sustainable job creation, nancial systems

strengthening, protect workers, women’s economic

empowerment, innovations across development

nance, and resilient global supply chains. By doing

so, DFC will expand the USG’s leadership on the

global development stage, oer sound alternatives to

malign state-directed initiatives, advance US national

security, and help put less developed countries on a

path toward greater prosperity and self-reliance.

DFC'S ROADMAP FOR IMPACT

Enhancing and expanding DFC’s eorts in fragile

states is essential to realizing its mandate of

advancing economic development and U.S. foreign

policy. Fragility fuels threats to U.S. national

security, enables external exploitation and impedes

economic growth globally. In 2019, the estimated

economic impact of violence on the global economy

was $14.5 trillion, or 10.6 percent of global gross

domestic product

. While many countries have made

remarkable progress eradicating extreme poverty

in recent years, many fragile, conict and violence-

aected countries have regressed and are also

impeding economic growth and fueling instability

among their neighbors. As a result of COVID-19,

global human development is likely to regress for the

rst time since the 1990s. The global public health

crisis will generate subsequent economic, social

and security-related shocks that will both expand

and deepen fragility. More targeted, coordinated,

and eective eorts to reduce fragility, prevent

violence, and promote stability are needed to protect

America’s prosperity and security.

The BUILD Act identied conict-aected countries

as a priority for DFC, and the Global Fragility Act of

2019 further stressed the importance of mobilizing

private sector resources to tackle the immense

challenges fragile states face in a sustainable manner.

There is a growing consensus that the international

community must shift from “funding to nancing”

when seeking to address increasingly intractable

conicts. However, the challenges to development

nance in fragile states are signicant, and a

strategic, coordinated approach to DFC investments

in these settings is essential to not only maximize

positive impact, but also to mitigate risk and prevent

unintended consequences. The Agency has identied

core principles for DFC’s work in fragile, conict and

violence-aected states as well as steps DFC will take

to operationalize those principles

Key Principles for DFC in

Fragile States

Participate in a unied U.S. eort. DFC will participate

in the Global Fragility Strategy development and

implementation process and work closely with the

interagency on a country and regional basis to ensure

alignment with U.S. objectives, leverage interagency

expertise, establish linkages with other U.S. eorts,

and identify and address potential project risks or

challenges. This will include working with relevant

counterparts at Departments of Defense, State, and

Treasury, USAID, and other agencies at the strategy

development, project identication, due diligence,

and implementation phases.

Fragility refers to the vulnerability

of a country or region to armed

conict, large-scale violence, or

instability, including an inability to

manage transnational threats or

other signicant shocks.

Institute for Economics and Peace, Global Peace Index 2020: Measuring Peace in a Complex World,Sydney, June 2020, p. 42.

DFC will align with the priority countries identied as part of the Global Fragility Act process and will reference tools such as the World

Bank’s list of countries experiencing conict and high fragility, the Fund for Peace’s Fragile States Index, and similar tools to assess its

investments in fragile states.

APPENDIX A: FRAGILE STATES APPROACH

DFC'S ROADMAP FOR IMPACT

Support Comprehensive, Conict Sensitive

Eorts for Market Strengthening. The basic

market conditions for private sector growth are

often lacking in fragile, conict and violence-aected

countries. For development nance to be eective

in these settings, DFC must avoid one-o projects

and be prepared to support a package of projects

that can help incentivize economic growth, improve

economic infrastructure, promote government and

business adherence to best practices, and build

sustainable value chains. This involves supporting

pioneer rms and fostering investments in a range

of interdependent sectors, including those that

serve as a country’s economic backbone, such as

power, telecommunications, and access to nance.

Further, DFC will promote coordination between

those investments to improve inter-project linkages

and synergies. Where development nance is not

an appropriate tool to address market gaps and

strengthen critical economic infrastructure in a target

market, DFC will coordinate with other agencies,

donors and the local government to ensure those

needs are being met through other mechanisms.

Take an Informed, Proactive Approach. Markets

in fragile states are characterized by uncertainty.

Before pursuing signicant investment in fragile

countries, DFC will seek to minimize uncertainty

better assess potential projects. To do so, DFC will

consult with interagency, private sector, and think

tank partners to strengthen its understanding of

market dynamics and trends, including identifying the

areas of greatest need and opportunity. DFC will then

proactively seek to identify and/or develop projects

in those areas. This proactive approach is necessary

not just to ensure strategic investments, it can

also help mitigate the risk that DFC unintentionally

reinforces negative patronage networks or

exacerbates intergroup tensions. This could include

issuing requests for proposals and other public

commitments that can also serve as signals to the

market to generate activity and condence.

Focus on Prevention. The greatest potential for

development nance comes through strategic

investments before instability or violent conict

erupts. Prevention refers to deliberate eorts to

interrupt the outbreak, escalation, or recurrence

of armed conict and violent crime. Prevention

is not only the absence of violence, but also the

presence of attitudes, structures and institutions

that enable countries to absorb and recover from

shocks and promote peace. DFC can contribute

directly to this resilience by leveraging existing tools

and approaches in ways that are creative, adaptive,

equitable and entrepreneurial. DFC will closely

monitor early warning mechanisms when identifying

priority countries and will seek to support projects

that create economic opportunity for marginalized

communities and promote inclusion and peaceful

cooperation among diverse stakeholders.

Identify Windows of Opportunity and

Incentivize Reform. Concerted, sustained

government action is needed to address the

corruption and weak enabling environments that

stunt private sector growth and perpetuate fragility

This includes making sustained investments to

reduce underlying structural and institutional risks

while adopting policies that improve the rule of law

and ensure transparent and eective government

licensing and regulatory mechanisms. Governments

can be incentivized to and assisted in making these

reforms, but they must have the political will. Absent

that will, the impact of DFC investments will be

limited and more likely to reinforce corrupt systems,

and projects will face a higher risk of failure. DFC

will seek to identify windows of opportunity when

political leadership in fragile states demonstrate a

commitment to reform and focus its investments in

those places. DFC will structure its investments in a

way that further incentivizes and builds a domestic

constituency for reforms, including by connecting

investments to ongoing U.S. and partner advocacy

eorts and pursuing bilateral agreements that set

conditions for expanding DFC investment in priority

areas.

DFC'S ROADMAP FOR IMPACT

Department of Defense. DFC recognizes that the

exchange of expertise and relationship building

that such detail programs provide are particularly

relevant when navigating the complex political and

economic dynamics that characterize fragile states.

Further, interagency details can help DFC leverage

the deep country expertise that exists within the U.S.

government.

Leverage existing tools. DFC’s Portfolio for Impact

and Innovation (PI2) can be used to support pioneer

rms in fragile contexts who lack the track record

or scale of traditional DFC partners. Additionally,

DFC’s Mission Transaction Unit (MTU) serves as

a conduit to USAID missions and manages joint

USAID-DFC projects. The MTU will play a critical role

in implementing blended nance approaches and

otherwise promoting collaboration with USAID eorts

in fragile states.

Mainstream Conict Sensitivity. No project in a

conict or violence-aected context can be neutral

in terms of its own impact on conict. Identifying

and mitigating inadvertent local tensions and/or

unintended operational, reputational or even legal

costs that result from external engagement is a

rst step to ensuring DFC programming is conict-

sensitive. Beyond ensuring that we do no harm, DFC

can also design and deliver investments in a way that

creates opportunities for peace, such as building

bridges, equalizing the playing eld and creating

opportunities for resilience.

Ensure Learning. DFIs are still learning how to most

eectively leverage their tools in fragile and conict

aected states, and how to balance and manage

the greater risk projects face in these settings. DFC

will use its new Impact Quotient tool as well as

other targeted assessments to better determine

which types of projects are most eective in fragile

states and integrate those lessons into its project

prioritization process. DFC will seek opportunities to

share its conclusions with relevant practitioner and

think tank platforms to contribute to the knowledge

base while also continually incorporating lessons

from U.S. government and other partners into its

own operations.

Leverage Partnerships. The investment needs

in fragile settings are too great for DFC to manage

independently, and the challenges will often be

too signicant for traditional nance approaches.

Conict-aected countries greatly benet from robust

donor coordination mechanisms; these should be

strengthened and leveraged to promote coordination

among DFIs and between DFIs and traditional donor

organizations. Blended nance approaches will

be critical to de-risk projects; expand the pool of

bankable projects; and provide pioneering rms,

small and women-owned businesses, and other

private sector partners the tools and training they

need to succeed. DFC will seek out co-investment

with regional and other partners, recognizing that

strategic partners can strengthen the project and

build a broad base for future investment while

ensuring a burden sharing approach.

Operationalizing DFC’s Fragile

States Approach

DFC will develop a tailored strategy for each fragile

or conict aected country in which it works, working

within the structures for interagency coordination

that will be established through the Global Fragility

Act. However, there are key steps DFC will take to

ensure the principles described above are eectively

operationalized

and upheld:

Prioritize work in fragile states. DFC aims to

invest 60 percent of its projects in low income,

lower-middle income, and fragile states. DFC will also

integrate a consideration of fragility into its project

review process, explicitly taking the GFA priority

countries and regions into account. This review will

include a consideration of whether projects in fragile

states are consistent with the principles above.

Enhance interagency linkages. DFC will expand

its interagency detail process to include candidates

with experience in fragile contexts from a range

of departments and agencies, including State

Department, USAID, Treasury Department, and the

DFC'S ROADMAP FOR IMPACT

DFC’s DFCG is an interagency technical group that has the goal of helping DFC and other USG Departments

and Agencies: (1) operationalize interagency tools designed to increase the quantity and quality of USG-

backed development investments and (2) provide input and identify opportunities for collaboration on DFC's

Development and Sectoral Strategies. Launched in June 2020, the DFCG consists of representatives from the

following U.S. Government Departments and Agencies:

• Export-Import Bank of the United States

• Millennium Challenge Corporation

• U.S. Agency for International Development

• U.S. African Development Foundation

• U.S. Department of Agriculture

• U.S. Department of Commerce

• U.S. Department of Defense

• U.S. Department of Energy

• U.S. Department of Labor

• U.S. Department of State

• U.S. Department of Treasury

• U.S. Environmental Protection Agency

• U.S. International Development Finance Corporation

• U.S. Oce of Management and Budget

• U.S. Trade and Development Agency

• U.S. Trade Representative

APPENDIX B: DEVELOPMENT FINANCE

COORDINATION GROUP MEMBERS

DFC'S ROADMAP FOR IMPACT

The Development Advisory Council was established by the Better Utilization of Investments Leading to

Development Act of 2018. Members are appointed by DFC’s Chief Executive Ocer in consultation with the

DFC’s Chief Development Ocer and with the approval of its Board. Members of the Development Advisory

Council include:

• Frederick Kempe: Since 2006, Kempe has served as President and CEO of the Atlantic

Council. Under his leadership, the Washington-based think tank has expanded its work

through regional centers spanning the globe and provided thought leadership on topics

ranging from global development and trade to energy and international security.

• Bashar Masri: As Founder and Chairman of the Board of Massar International, Masri

spearheads investment in agriculture, technology, nancial services, and other sectors that

advance development across the Middle East and North Africa.

• Robert Mosbacher, Jr.: Mosbacher served as Chairman and CEO of the Overseas Private

Investment Corporation, 2005 to 2009. He is Co-Chair of the Consensus for Development

Reform and sits on the boards of the Center for Global Development and the Initiative for

Global Development. He is also Chairman of Mosbacher Energy Company.

• Michelle Nunn: Nunn is President and CEO of CARE USA, a humanitarian organization that

ghts global poverty and provides lifesaving assistance in emergencies. She has led several

ambitious initiatives and sharpened the organization’s focus on collaboration with the

private sector.

• Damilola Ogunbiyi: Ogunbiyi serves as CEO and Special Representative of the United

Nations (UN) Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy.

Prior to her appointment to these roles by UN Secretary-General António Guterres, she held

various leadership positions in organizations focused on expanding energy access in Sub-

Saharan Africa.

• Edward R. Royce: Royce served more than 25 years in the House of Representatives,

including as Chairman of the House Foreign Aairs Committee from 2013 to 2019. In his

current role as Policy Director at Brownstein Hyatt Farber Schreck, LLP, Royce advises

international companies doing business domestically and guides multinational corporations

looking to expand overseas.

APPENDIX C: DEVELOPMENT ADVISORY

COUNCIL MEMBERS

DFC'S ROADMAP FOR IMPACT

• Paul Weisenfeld: As Executive Vice President for International Development at RTI

International, Weisenfeld leads the design and implementation of programs aimed at solving

global development challenges. He previously directed the Bureau for Food Security at the

United States Agency for International Development (USAID) and served as USAID Mission

Director in Peru and Zimbabwe.

• Liz Schrayer: Schrayer is President and CEO of the U.S. Global Leadership Coalition

(USGLC), a broad-based coalition of over 500 businesses and NGOs that advocates for

strong U.S. global leadership through development and diplomacy. In this role, she has

grown the USGLC to a nationwide network of advocates in all 50 states.

• The Honorable Ellen Johnson Sirleaf: As President of Liberia from 2006 to 2018, Dr.

Sirleaf is the rst female head of state to be democratically elected in Africa. She has

signicant private and public banking experience and has worked to promote peace,

reconciliation, and economic development in Libera and across the continent. Dr. Sirleaf is

also the recipient of the 2011 Nobel Peace Prize.

DFC'S ROADMAP FOR IMPACT

ENDNOTES

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DFC'S ROADMAP FOR IMPACT

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Database 2017: Measuring Financial Inclusion and the Fintech Revolution. Report, Washington D.C.: World

Bank Group. https://openknowledge.worldbank.org/handle/10986/29510

Bellens, Jan. 2018. How banks can play a stronger role in accelerating nancial inclusion. April 25. Accessed

September 2020. https://www.ey.com/en_us/trust/can-inclusive-banking-drive-economic-growth-in-

emerging-markets

USAID. "Primer on Catalyzing Agricultural Finance." 2019. Agrilinks. September 2020.

https://www.agrilinks.org/sites/default/les/resources/190829_usaid_ag_nance_primer_vnal.pdf

World Bank: Future of Food: Harnessing Digital Technologies to Improve Food System Outcomes. https://

www.worldbank.org/en/topic/agriculture/publication/future-of-food-harnessing-digital-technologies-

to-improve-food-system-outcomes

USAID. 2016. U.S. Government Global Food Security Strategy . Strategy, Washington D.C https://www.usaid.

gov/sites/default/les/documents/1867/USG-Global-Food-Security-Strategy-2016.pdf

U.S. Government. 2020. Feed the Future Initiative https://www.feedthefuture.gov/about/

World Health Organization. 2019. Primary health care on the road to universal health coverage: 2019

monitoring report: executive summary. Geneva. (WHO/HIS/HGF/19.1). https://www.who.int/docs/default-

source/documents/2019-uhc-report-executive-

Lack of access to antibiotics is a major global health challenge Date: April 9, 2019 Source: Center for Disease

Dynamics, Economics & Policy, https://www.sciencedaily.com/releases/2019/04/190409135849.htm

How Businesses Can Crack Health Care’s Last Mile Problem; Adam Lashinsky; Fortune https://fortune.

com/2016/12/02/last-mile-health-raj-panjabi-business/

Genomic Medicine in Developing and Emerging Economies: State-of-the-Art and Future Trends;

CatalinaLopez-Correa*George P.Patrinos https://www.sciencedirect.com/book/9780128115312/genomic-

medicine-in-emerging-economies

DFC'S ROADMAP FOR IMPACT

DFC’s Global Health & Prosperity Initiative aims to invest $2 billion and catalyze $5 billion of investment in

healthcare, WASH, and food security by 2023. The metrics for these three development sectors are broken

down separately in the Development Strategy with the investment targets being for 2025, not 2023.

Individuals who do not have safely managed water services include: people with basic services, or an

improved water source requiring less than 30 minutes to collect water; people with limited services, or

an improved water source requiring more than 30 minutes to collect water; people taking water from

unprotected wells and springs; and people collecting untreated surface water from lakes, ponds, rivers and

streams. (WHO; https://www.who.int/en/news-room/fact-sheets/detail/drinking-water)

World Health Organization. 2019. Sanitation Factsheet. June 14. Accessed September 2020. https://www.

who.int/news-room/fact-sheets/detail/sanitation

The World Bank . 2017. WATER RESOURCES MANAGEMENT. September. Accessed September 2020. https://

www.worldbank.org/en/topic/waterresourcesmanagement

USAID. 2017. U.S. Government Global Water Strategy. Strategy , Washington D.C.: USAID. https://www.

usaid.gov/what-we-do/water-and-sanitation/us-global-water-strategy