Agency launch marks a new era of U.S. development finance and foreign policy
WASHINGTON – U.S. International Development Finance Corporation (DFC) has officially opened its doors, ushering in a new era of U.S. development finance and foreign policy. As America’s development bank, DFC will help businesses expand into emerging markets, foster growth, and improve lives in the developing world, while reinforcing U.S. foreign policy and national security interests.
“The launch of DFC is the result of close collaboration between the Administration and bipartisan leaders in Congress, and marks one of the greatest advances in U.S. international development and foreign policy in a generation,” said DFC Chief Executive Officer Adam Boehler. “By leveraging the private sector to support sustainable, transparent, and responsible investments, DFC will advance a modernized approach to development that promises unprecedented impact.”
DFC combines and modernizes the existing development finance functions of the U.S. Government—namely the Overseas Private Investment Corporation (OPIC) and USAID’s Development Credit Authority (DCA). The new agency was created with bipartisan support through the Better Utilization of Investments Leading to Development (BUILD) Act and has been preparing to launch since President Trump signed the BUILD Act into law in October 2018.
In addition to OPIC and DCA’s previous capabilities, DFC is equipped with new resources and tools to multiply its impact. Enhancements include an investment cap of $60 billion—more than double OPIC’s $29 billion limit—and new financial tools such as equity investments, technical assistance, and feasibility studies to more proactively address development needs.
"DFC has three objectives: first, to invest in highly impactful projects in developing countries; second, to advance U.S. foreign policy; and third, to continue our consistent track record of generating returns for the American taxpayer,” Boehler continued. "It is a privilege to lead such a team of talented and committed development and finance professionals."
DFC will advance a private sector-led model that supports development by providing businesses with financing, insurance, and other financial tools when they are unavailable or insufficient from commercial sources. These development finance tools can mobilize significant private capital into the developing world, where government resources alone are not enough to meet pressing needs and challenges.
DFC will prioritize investments in low-income and lower middle-income countries. The agency will consider other investments that are important to U.S. foreign policy and national security or address key agency priorities such as women’s economic empowerment. DFC’s enhancements will bolster important efforts under OPIC’s 2X Women’s Initiative and Connect Africa as well as its work in priority regions such as the Indo-Pacific and Latin America.
Additionally, DFC will coordinate closely with its U.S. Government counterparts to ensure investments complement and support U.S. foreign policy goals. It will also have greater flexibility to collaborate with development finance partners across the globe.
U.S. International Development Finance Corporation (DFC) is America’s development bank. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.