An estimated 70 million people around the world live as international refugees or are displaced within their own borders, and the vast majority of them are in developing countries. These refugees often lack critical services including financial services that are essential to accessing food, education, healthcare, and to working as entrepreneurs. By 2030, global forced migration is estimated to exceed 300 million people.
Solution and Impact:
A $20 million loan to Kiva Refugee Investment Fund LLC will support microfinance lending to refugees, internally displaced persons, and impacted host populations in 13 countries. The lending will reach borrowers in multiple lower-income countries including Uganda and El Salvador, as well as countries such as Jordan that are strained by large refugee populations.
The fund has raised $11.5 million of equity and $1 million of additional debt financing and aims to ultimately reach up to 200,000 borrowers. In addition to providing access to critical financing, the project will also help provide access to training related to financial literacy and business development.
By reaching a population that is significantly underserved by traditional lenders, the project will advance DFC’s work to support inclusive growth by investing in marginalized communities. With 70 percent of the loans expected to reach female borrowers, the project will also advance DFC’s 2X Women’s Initiative to advance women’s economic empowerment.