World Bank and PFG to provide $30 million to Emerging Markets Fintechs

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The World Bank, through its global development institution, the International Finance Corporation (IFC) and US fund manager Partners for Growth (PFG), have joined efforts to provide loan capital to early-stage startups. start-up or intermediary in emerging markets.

A statement released by the IFC said the funds will be focused on fintech, software, e-logistics, healthcare and life sciences companies on the continent.

“IFC, a member of the World Bank Group, will invest $30 million in a new investment vehicle managed by PFG. The vehicle will be PFG’s first managed account dedicated solely to global emerging markets and IFC’s first investment with a private debt manager focused on venture capital and growth markets. The IFC communiqué elaborated.

Paulo de Bolle, global senior director of IFC’s Financial Institutions Group, said the credit facility will help revive businesses in emerging markets after the Covid-19 pandemic.

“The COVID-19 pandemic has increased uncertainty and risk aversion in emerging markets, limiting the amount of credit available to small and medium-sized businesses,” de Bolle said. “Our partnership with PFG will play a key role in improving access to funding for deserving high-growth technology companies.”

This partnership aims to support the expansion of digital activities which have experienced accelerated growth over the past two years.

“Nowhere is the scope of the impact greater than in emerging markets as they rebound in the years to come. This partnership will support the growth of small and medium-sized businesses in the technology sector and enable new financial service providers to thrive. Says the IFC statement.

“Fintech companies bring financial services to large underbanked populations, improve financial inclusion and support economic growth, while opening up attractive new markets across a wide range of financial services,” said Andrew Kahn, Chief Executive Officer. general and CEO of PFG. “We are excited to work with IFC on this partnership to bring new capital solutions to technology and innovation companies in emerging markets.”

The IFC did not specify which emerging market countries could benefit from this credit financing.

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