The Development Credit Authority (DCA) allows USAID to mobilize local financing to support the development objectives of the U.S. government through partial credit guarantees. Guarantee agreements encourage private lenders to extend financing to new sectors and regions. By encouraging local channels of financing, USAID is empowering entrepreneurs in developing countries to improve their lives at a minimal cost to the U.S. taxpayer. Read more here.
DCA News
This short video explains how USAID’s Development Credit Authority unlocks private capital in developing countries to enable countries to spur their own development.
USAID Publishes DCA Guarantee Activity From 2011
In 2011, USAID utilized its Development Credit Authority to complete 37 transactions in 21 countries that will result in nearly $200 million in private capital for local loans that align with U.S. development priorities. Read more here. (PDF 79KB)
USAID Releases its Development Credit Authority Data to the Public
In December, USAID released a data set containing information on all guarantees signed since the inception of USAID’s Development Credit Authority, including the total number of loans, the total amount lent under each guarantee, as well as how much the U.S. government has had to pay in claims under each due to loan default. Read more here.
USAID Partners with Private Ethiopian Banks to Increase Credit for Agriculture and Health
On November 22, a new health sector loan agreement between USAID, the Bank of Abyssinia and NIB Bank will provide up to $13.4 million dollars in loans to private health sector enterprises. A new agriculture sector agreement makes it possible for small holder farmers and farming cooperatives to purchase agricultural equipment through lease financing. Read more here. (PDF 35KB)
