USAID Partners with Swedish Development Agency to Support Developing Country Entrepreneurs
FOR IMMEDIATE RELEASE
March 26, 2010
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WASHINGTON, DC, MARCH 26, 2010 - The U.S. Agency for International Development (USAID) and the Swedish International Development Cooperation Agency (Sida) today announced a new private-public partnership to support financing to entrepreneurs throughout the developing world. Rajiv Shah, Administrator of USAID, and Anders Nordström, Director General of Sida, signed a Memorandum of Understanding to formalize the collaboration.
This event marks the first time that these two development agencies have combined efforts to issue joint guarantees, and plans are already underway to partner on joint guarantees in Bosnia and Haiti. The USAID-Sida partnership will enable entrepreneurs and development projects to access private financing which would not be otherwise available without a guarantee. By demonstrating to the market the profitability of this borrower sector, private financial institutions will gain the experience necessary to continue lending without additional USAID-Sida support. To date, USAID has already made over $1.9 billion of private credit available through its credit guarantee program, the Development Credit Authority.
"Our collaboration with Sida will help increase the flow of private sector capital into investment-starved sectors such as climate change, post-disaster reconstruction, food security, and health," said USAID Administrator Rajiv Shah. "Additionally, it will demonstrate that partnership with the private sector can produce enduring development results by channeling those resources into productive investments.
Sida's Director General Nordström said "Sida is pleased to be able to enter into this important partnership with USAID. The guarantee program responds to an increasing need for flexible investments to accelerate growth in developing countries. Together we can further refine and innovate the forms of development assistance in order to maximize the outcome for people living in poverty. Our joint effort will also enable us to incentivize the private sector, enhancing, enlarging and targeting resources for proactive development."
For more information about USAID, visit www.usaid.gov.
For more information about Sida, visit www.sida.se.
The American people, through the U.S. Agency for International Development, have provided economic and humanitarian assistance worldwide for nearly 50 years.
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