DFC 

CONGRESSIONAL

BUDGET 

JUSTIFICATION

Fiscal Year 2022

dfc.gov
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Table of Contents

Executive Summary _________________________________________________________________ 1

Administrative Budget..................................................................................................................... 2

Inspector General............................................................................................................................. 2

DFC Goals _________________________________________________________________________ 3

Confront the climate crisis............................................................................................................... 3

Support the global COVID response ................................................................................................ 3

Advance women’s economic empowerment..................................................................................... 3

Maximize Development Impact ....................................................................................................... 4

Drive Private Capital Toward U.S. Foreign Policy Objectives.......................................................... 4

Growing the Quality and Quantity of Our Investments..................................................................... 5

Equity Investments.................................................................................................................... 5

Mobilize private investment ...................................................................................................... 5

Collaborate with Partners to Maximize Impact........................................................................... 5

FY 2022 DFC Budget Request _________________________________________________________ 6

Administrative Expenses.................................................................................................................. 6

Transaction Origination Resources ............................................................................................ 8

Implementing Resources ........................................................................................................... 8

Development Monitoring and Evaluation................................................................................... 8

Legal......................................................................................................................................... 9

Grants and Technical Assistance................................................................................................ 9

Funding DFC’s Programmatic Authorities ....................................................................................... 9

Technical Assistance and Feasibility Studies ............................................................................. 9

Equity Program Funding.......................................................................................................... 10

FY 2022 Policy Priorities ____________________________________________________________ 11

Regional Priorities......................................................................................................................... 11

Sector Priorities............................................................................................................................. 11

Climate ................................................................................................................................... 11

Healthcare ............................................................................................................................... 11

Financial Inclusion and Gender Equity .................................................................................... 12

Information and Communications Technology......................................................................... 12

Inclusive Growth .................................................................................................................... 13

Financial Service Technologies for Underserved Populations................................................... 13

Food Security & Global Supply Chain..................................................................................... 13

Summary and Conclusion ___________________________________________________________ 15

Appendices ________________________________________________________________________ 16

Appendix A: Appropriations Language.......................................................................................... 16

Corporate Capital Account ...................................................................................................... 16

Program Account .................................................................................................................... 17

Transfer of Funds Authority .................................................................................................... 17

Appendix B: Fiscal Year 2020 in Review....................................................................................... 18

Sectoral Priorities.................................................................................................................... 18

Strategic Initiatives................................................................................................................... 21

Appendix C: Budget by Object Class............................................................................................. 23
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FY 2022 Budget Request DFC Page 1 

Executive Summary

The United States International Development Finance Corporation (DFC) is the official development 

finance institution (DFI) of the United States. DFC is an independent Executive Branch agency that 

partners with the private sector to finance solutions to the most critical challenges facing the developing 

world today. DFC’s private sector tools provide a critical bridge between federal resources and dynamic 

private sector driven development.

DFC requests a Fiscal Year 2022 budget of $450 million in program funds and $148.0 million for 

administrative expenses and project-specific transaction costs. The $450 million in program funds will be 

flexibly allocated across credit subsidy, equity, technical assistance, and grants or other special projects 

and programs. This level of resources reflects the scale and complexity of the issues facing the developing 

world, including climate change and responding to and recovering from the COVID-19 pandemic. DFC 

will engage and mobilize the private sector to meet these challenges as part of a whole-of-government 

approach. DFC lays a foundation for sustainable economic growth grounded in American values: 

transparency, respect for the environment, economic inclusivity, and good governance. As global 

development and investment become increasingly competitive and other nations invest aggressively, DFC 

is key to ensuring that our model – underpinned by support for private sector investment that advances 

development – wins out. From microfinance, to secure telecommunications, to infrastructure, DFC’s 

programs ensure that private sector investment meets its full potential for creating opportunity and growth 

in the developing world. 

Program Priorities

The FY 2022 budget request will enable DFC to grow its portfolio by addressing the significant 

unmet financing needs in key sectors and regions that align with United States development and 

foreign policy objectives. DFC’s budget request will allow the agency to continue working in 

coordination with the Department of State (State), the United States Agency for International 

Development (USAID), the Millennium Challenge Corporation (MCC), and others to advance 

the following core DFC and Administration priorities.

• Climate: DFC will use its investment tools to support projects that help mitigate climate changecausing greenhouse gas emissions and those that boost adaptation and resilience in the most 

vulnerable global communities. 

• Health: DFC will support the international response to COVID-19, build more resilient 

healthcare supply chains, and expand access to healthcare professionals, facilities, and lifesaving 

treatments. DFC will work to expand access to clean drinking water and improved sanitation in 

schools and healthcare facilities. It will also seek to strengthen global agricultural value chains by 

investing in projects that help farmers increase yields, reduce food waste, and expand exports.

• Gender Equity: DFC, through its 2X Initiative, will invest in women and girls globally to 

address their unique needs and unlock opportunities through financial services, support for small 

businesses, and projects run by and directly targeted especially to women.
FY 2022 Budget Request DFC Page 2 

• Inclusive Growth: DFC will prioritize projects with high developmental impact in low-income 

and lower middle-income countries with a focus on accelerating economic growth in indigenous 

and underserved communities to reduce extreme poverty and income inequality. 

• Information and Communications Technology: DFC will support information and 

communications technology projects that have the potential to drive additional opportunity and 

growth in developing markets where increased connectivity can help spur transformative 

opportunities.

• Regional Focus Areas: DFC will seek to grow its portfolio of catalytic investments especially in 

Africa, Southeast Asia, and the Northern Triangle to drive broad-based, values-driven, private 

sector-led growth that expands economic opportunity and advances U.S. development objectives.

Administrative Budget

The budget request of $148.0 million for administrative expenses and project-specific transaction costs is 

critical to implementing innovative and effective programs and partnerships, to fostering an effective and 

efficient DFC organization, and to maintaining a fiscally responsible agency both now and for the future. 

This request is a 24% increase over the FY 2021 enacted level of $119.0 and will primarily support 

increased staffing and other support costs needed to advance the President’s Climate Change agenda.

DFC seeks to maintain and expand partnerships with USAID, State, MCC, and other federal agencies to 

foster a whole-of-government approach to development. There are also critical efforts at DFC to 

strengthen partnerships with other DFIs, international finance institutions (IFIs), non-governmental 

organizations (NGOs), and think tanks to maximize cooperation and development impact.

DFC is committed to all efforts to foster an effective, efficient, and inclusive organization. DFC seeks to 

empower staff to create a productive and positive work environment, and the organization is committed to 

attracting and retaining the skilled personnel it needs to achieve its development and foreign policy 

objectives. DFC will direct administrative resources toward expanding stakeholder engagement and 

increasing the number of women and minority-owned U.S. businesses that receive DFC project support 

and financing. Administrative resources will enable the agency to strengthen management and oversight 

structures for complex transactions, ensuring that DFC can identify risks, make prudent decisions, 

monitor results, and maximize the policy and financial value of DFC’s portfolio. 

At the same time that DFC is managing its internal operations, DFC is focused on expanding its client 

base and identifying new private sector partners. By ramping up business development efforts and 

providing effective customer service to project sponsors, DFC will be a leader on the global development 

stage. DFC is committed to taking on the most critical challenges facing the developing world today, and 

the scale of DFC’s resources must match the challenges it seeks to address. This budget request is our 

blueprint for the resources that are realistically required for DFC to make the impact that the 

Administration and Congress envisioned with the passage of the BUILD Act.

Inspector General

The Budget also requests $2.8 million for a dedicated Inspector General to provide robust inspection, 

oversight, and evaluation.
FY 2022 Budget Request DFC Page 3 

DFC Goals

Confront the climate crisis

President Biden has appropriately called climate change the existential threat of our time and called on 

DFC to support investment in climate mitigation, resilience, and adaptation in the developing world. 

While climate change impacts all countries, emerging economies are often particularly vulnerable 

because they lack the infrastructure, insurance, and agricultural technology to protect against severe 

weather. 

 

DFC is a leader in financing projects that help countries generate clean energy, including solar, wind, 

hydro, geothermal and biomass. The agency has increased its focus on the global climate crisis with a 

series of bold commitments, including achieving net-zero emissions across its portfolio by 2040, focusing 

one-third of all new investments on climate by 2023, increasing technical support for climate projects, 

and issuing calls for applications for climate-focused funds and Distributed Renewable Energy projects.

Support the global COVID response

COVID-19 has presented a global health emergency and exposed a staggering need for improved 

healthcare infrastructure in the developing world. Even as the United States sees progress in 

administering vaccines and reducing cases, many developing countries continue to suffer severe 

outbreaks and vaccine shortages. 

DFC is playing a key role in the Biden Administration’s efforts to build permanent, sustainable, and 

diversified manufacturing capacity around the world to help developing countries access more vaccines 

and prepare for future pandemics. The agency is also working to expand access to critical therapeutics, 

introduce medical equipment designed for low-resource environments, and bolster liquidity to help 

struggling small businesses continue to operate. 

DFC’s financing tools can mobilize private sector resources to help counter the devastating economic 

consequences of the pandemic. DFC will continue to seek opportunities to increase liquidity through 

onlending institutions to businesses impacted by shutdowns. 

Advance women’s economic empowerment

DFC will also increase its commitments to projects that empower women. Under the Agency’s 2X 

Women’s Initiative, DFC has catalyzed more than $7 billion of investments in projects that are owned by 

women, led by women, or provide a product or service that empowers women. In 2020, DFC committed 

to catalyzing an additional $6 billion of private sector investment in global women's economic 

empowerment over the next three years. Women drive growth and foster stability in their homes, 

communities, and economies. Yet women face extreme barriers to achieving full participation in and 

contribution to their economies and to society as a whole. DFC will use the power of its investments to 

advance gender equity.
FY 2022 Budget Request DFC Page 4 

Maximize Development Impact

DFC is committed to investing in projects that address the biggest challenges the world faces, with a 

strong focus on low-income and lower middle-income countries and underserved communities. This work 

encompasses a broad range of issues, from food insecurity to energy poverty to causes of migration. DFC 

works to expand access to healthcare, technology, modern infrastructure, and financial services.

Serving the most vulnerable populations is core to DFC’s mission and at the heart of DFC’s investment 

goals. DFC is expanding its approach to business development by building on strong relationships with 

existing clients while focusing additional efforts on stakeholder engagement to bring in new clients to 

pursue the most developmental opportunities. 

When DFC was created through the BUILD Act, it was directed to create a modernized development 

impact measurement tool. In 2020 DFC launched the Impact Quotient (IQ) framework to monitor and 

measure the development impact of every project it supports, across multiple categories including growth 

to the local economy, inclusion of underserved populations, and the innovation that is supported through 

the introduction of new products, services, or the financial structure of the deal. 

DFC will look for ways to expand the uses of its IQ framework to monitor and measure the development 

impact of every project it supports over the life of the project, to assess the long-term impact, and to use 

the data it collects to make adjustments to individual projects and inform future investments to further 

advance DFC’s development objectives. 

Drive Private Capital Toward U.S. Foreign Policy Objectives

DFC investment in critical sectors like climate, food security, agriculture, and global health not only helps 

improve livelihoods for those most in need, but also has direct implications for the health and security of 

Americans themselves. By investing in vaccine manufacturing around the world, we will help countries 

be more prepared for epidemics that might otherwise become global pandemics. By investing in climate

solutions, we can help communities mitigate and adapt to extreme weather that might otherwise lead to 

displacement and migration. Achieving economic and political stability in less developed countries is 

inextricably intertwined with increasing private sector investment. DFC’s focus on development in low 

and lower middle-income countries helps to promote global stability and offer an alternative to predatory 

development models. For example, DFC’s efforts to support private sector-led development in the 

Northern Triangle region of Central America are an important component of the whole-of-government 

effort to address the root causes of migration by creating broad-based, sustainable economic opportunity 

in the region.

DFC’s investments advance American values including transparency, respect for the environment, 

economic inclusivity, and good governance. We work with like-minded investment partners and

the private sector to develop projects that are financially sustainable, and we coordinate directly 

with other U.S. government agencies, including NSC, State, and USAID, to ensure that we are 

supporting U.S. foreign policy priorities. DFC adheres to the high standards of international financial 

institutions related to governance. DFC operates transparently, ensures debt sustainability, and respects

internationally recognized environmental and social safeguards. 
FY 2022 Budget Request DFC Page 5 

Growing the Quality and Quantity of Our Investments

DFC is increasing its portfolio size in terms of the number of projects supported, as well as dollars 

invested or insured. With more flexibility granted through the BUILD Act, DFC is positioned to deploy 

more capital and to have an even greater impact in the developing world. 

Equity Investments

Equity is a key authority for achieving developmental and strategic outcomes. Equity is often an effective 

investment tool for earlier stage companies that offer a solution or innovative technology, but are not in a 

position to take on debt. Potential equity investments come from at least four sources: (1) co-investment 

rights in most or all funds in which we invest, (2) reviewing our loan and insurance portfolios for 

companies or projects that are good candidates for equity investment, (3) referrals from other DFI 

partners; and (4) direct business development opportunities. 

Mobilize private investment 

Private capital mobilization in support of sustainable, broad-based economic growth, poverty reduction, 

and development advances U.S. foreign policy interests. Through demand-driven partnerships with the 

private sector, DFC leverages private-sector resources to promote economic growth in developing 

countries, helping to extend American influence and to reinforce American values, such as the rule of 

law, transparency, and fair business practices. Emerging market trading partners that adhere to freemarket principles and promote transparent, rules-based governance today will provide robust markets for 

American goods and services tomorrow.

DFC offers financing and other innovative financial products that drive private capital investment in 

challenging emerging markets to address local needs. DFC offers loans, guarantees, equity investments,

political risk insurance and feasibility studies to catalyze significant amounts of private capital into 

emerging markets. This backing is essential to mobilizing government and private resources into 

supporting key sectors such as infrastructure, power, water, and health. These investments improve the 

quality of life for millions, laying the groundwork for modern economies, and helping provide financing 

for women or others who have lacked sufficient—or any—access to commercial financing.

Collaborate with Partners to Maximize Impact 

DFC is creating valuable partnerships with other U.S. federal agencies, development finance institutions, 

NGOs, think tanks, and the private sector to maximize development impact. DFC recognizes that nongovernment stakeholders play a critical advisory and partnership role.

DFC leverages the expertise and thought leadership that outside stakeholders provide to advance its 

development mandate. DFC and many foundations share a common mission but bring different resources 

and tools to the table. DFC will continue to leverage expertise and grant funding from foundations to 

expand its impact. DFC values the resources non-government stakeholders bring to the table including 

research, sector expertise, and regional presence. 
FY 2022 Budget Request DFC Page 6 

FY 2022 DFC Budget Request 

DFC requests $148.0 million for administrative expenses including project-specific transaction costs. In 

addition, DFC requests $450.0 million in program funds, to be flexibly allocated among credit subsidy, 

grants, technical assistance, and special projects and programs. DFC proposes continued broad flexibility 

to transfer funds to DFC from multiple accounts. This amount is requested as an uncapped transfer 

authority in order to provide flexibility to the interagency collaboration. New in FY 2022, the 

Administration is proposing language to transfer funding from MCC to DFC.

Summary of Budget Authority

$ in thousands

FY 2020 FY 2021 FY 2022

Enacted Enacted President’s

Request

Program Appropriation

Equity 150,000 - - 

Credit Subsidy, TA/Feasibility Studies 30,000 - - 

Combined Program Budget (Equity, FCRA) 450,000 450,000

Programs - Total 180,000 450,000 450,000 1 

Administrative Expenses 119,000 119,000 148,000 

Total, Gross New Budget Authority 299,000 569,000 598,000 

Offsetting Collections (420,144) (450,818) (472,411) 

Total, Net Budget Authority (121,144) 118,182 125,589 

Memo: 

Maximum Lending Limit 8,000,000 8,000,000 10,000,000

Program Transfers Limitation 50,000 50,000 - 2

1 The combined $450 million program request for FY 2022 will provide combined funding for all of DFC’s 

authorities.

 2 For FY2022, the administration is requesting no cap to transfers (Sec 7009). 

Administrative Expenses 

As DFC builds towards its authorized portfolio of $60 billion, DFC requires substantial administrative 

support in order to properly manage the exposure and complex risks involved in DFC’s program. 

DFC continues scaling up its program, both in terms of portfolio size and extending into new products 

such as foreign currency and equity. The agency requires administrative funding to fully utilize the 

development finance capabilities of the U.S. Government, as both a development and a foreign policy tool

in coordination with the private sector. 

DFC will continue to work closely with USAID missions to provide the financing tools that are a critical 

complement to USAID’s objective of promoting a path to a recipient country’s self-reliance and 

resilience. The Mission Transaction Unit (MTU) within DFC’s Office of Development Credit works with 
FY 2022 Budget Request DFC Page 7 

USAID mission officers to identify projects that help achieve the country’s development goals, and MTU 

then executes the financing transaction on the mission’s behalf. At the same time, DFC will leverage the 

broader footprint of U.S. embassies and missions around the world to engage with in-country partners, 

while increasing the impact of its portfolio and more effectively monitoring and adjusting its global

project portfolio throughout the world.

The FY 2022 budget request, for Administrative Resources, is $29.0 million (or 24%) above the FY 2021 

Budget Appropriation of $119.0 million, for a total of $148.0 million. The increase in funding is detailed 

below and will primarily support increased staffing and other support costs needed to advance the 

President’s Climate Change agenda. 

Table I: Summary of requested budget increases for FY2022

$ in millions

FY 2022 Increase

Transaction Origination Resources 17.8 

Implementing Resources 2.9 

Development Monitoring and Evaluation 5.7 

Legal 1.5 

Grants and Technical Assistance 0.9 

Total 29.0 

The request assumes hiring an estimated 51 new employees to sustain existing work and allow for 

increases for financing, insurance and equity activities; evaluation and monitoring activity—both in 

support of development and portfolio monitoring; interagency coordination; operational implementing 

resources; and responding to new reporting requirements mandated by the BUILD Act such as the 

statutorily mandated offices of Chief Risk Officer, Chief Development Officer and Accountability 

Mechanism. Additionally, this will support efforts to enhance corporate governance flowing from the 

Inspector General and collaborative functions created by the BUILD Act. 

Table II: Summary of requested headcount increases for FY2022 

FY 2020

Actual

FY 2021

Projected

FY 2022

Request

Full Time Equivalent 322 430 481
FY 2022 Budget Request DFC Page 8 

Transaction Origination Resources 

DFC’s goal is to leverage the tools in the BUILD Act fully and to increase the level of investment it 

supports by growing the portfolio in regions and sectors that are key to the Administration’s development 

and foreign policy objectives. To meet these goals, DFC is working to scale up existing transaction 

capacity and controls. The increased portfolio authorization and addition of modern investment tools

equip DFC to mobilize substantial capital to advance development and promote inclusive economic 

growth in the world’s least developed countries. 

In FY 2022 DFC will scale up its existing equity, direct loan and loan guarantee capabilities, in order to 

originate, manage, and exit investments. The FY 2022 budget request will support continued

implementation of the authority to make direct loans in local currencies – enabling DFC to mobilize local 

resources. 

The FY 2022 request also supports staffing increases for DFC to develop new centers of climate 

expertise, along with the State Department, to reestablish U.S. leadership on climate change. To lead the 

agency climate agenda, DFC has hired its first-ever dedicated Chief Climate Officer who will lead DFC’s 

efforts to confront the climate crisis, including leading execution of the agency’s recently announced plan 

to reach net zero emissions by 2040 and focus one-third of all new investments on climate by 2023. The 

agency will establish a team to coordinate its nature-based solutions efforts with USAID and the State 

Department. Hiring staff with experience and expertise in nature-based solutions will be essential, as the 

agency does not have inherent expertise in carbon sequestration. Nature based solutions, i.e., forestry 

projects, will be critical to sequester carbon, and structuring transactions in this area requires technical 

expertise. Additionally, an increase in climate-focused investments will require staffing increases during 

the pre-commitment diligence process to support a larger volume of transactions requiring social and 

environmental policy review in accordance with International Finance Corporation’s Performance 

Standards.

To meet the agency’s bold new climate targets, DFC will also need additional resources for business 

development and overseas personnel to facilitate greater climate finance investments.

Implementing Resources

DFC’s growing business scale and complexity requires supporting people, processes, and technology to 

maintain and grow its ability to prudently manage its portfolio and efficiently execute on new project 

activity. To responsibly implement the planned increase in climate related transactions, this FY 2022 

budget proposal requests additional resources and staffing needed to advance the Corporation’s prudent 

management of the project workload and the related functions that must be performed, once the debt, 

equity and insurance projects have been committed, documented and disbursed. These include the full 

range of support functions, from acquisitions to accounting, budget and financial management. They 

include all the credit monitoring and portfolio servicing activities, risk management and internal controls, 

and data gathering, analysis and reporting. In short, this request will provide the resources needed to keep 

pace with portfolio growth and perform effective oversight of the financial performance of the projects.

Development Monitoring and Evaluation

To be an effective development bank, DFC is committed to continuing to build its monitoring, evaluation, 

impact assessment, and learning capacity so that it can collect data on the impact of the projects it 

supports. As set forth in the BUILD Act, DFC must assess the development performance of individual 

transactions, as well as its overall portfolio. This is a new area of focus for the agency, and we need to 

substantially invest in our capacity to measure and communicate development outcomes.
FY 2022 Budget Request DFC Page 9 

DFC’s monitoring, evaluation, impact assessment, and learning capabilities will also need additional 

resources. Contract support will be required, including for conducting climate risk analysis to understand 

potential consequences or responses to impacts of climate change and to de-risk investments over the 

lifespan of the project. 

Legal

With a planned increase in environmentally focused transactions in FY 2022, additional resources for

both legal staff and contract support will be necessary. This requirement is directly driven by the 

commercial nature of DFC’s transactions and the complex nature of collateral and risk sharing structures. 

Long after the transactions are originated, legal resources are required for monitoring and contract 

enforcement.

Grants and Technical Assistance

DFC’s grants and technical assistance program funds technical assistance, feasibility studies, and training 

that implement DFC’s mission of mobilizing private capital to advance development and support of U.S. 

foreign policy objectives. Grants and technical assistance are designed to increase the development 

impact or improve the commercial sustainability of a project that has received, or may receive, DFC 

financing or insurance support. This assistance will be designed to complement, but does not duplicate, 

work funded by other agencies or sources of financing.

The new Climate Action Facility will provide $50 million over the next five years for feasibility studies 

and technical assistance to support the identification, design, and implementation of DFC’s climate 

portfolio. To support this initiative, DFC will need additional Technical Development Program team 

members to design climate-focused technical assistance and feasibility study activities, as well as contract 

support. 

Funding DFC’s Programmatic Authorities

DFC requests $450 million to support its credit, equity, technical assistance, and other special projects 

activities. This request will allow DFC to scale up to meet the challenges the Administration and 

Congress sought to tackle with the establishment of DFC through the BUILD Act. It will allow DFC to 

continue the expansion of the classic financing and insurance work of OPIC and DCA and will further 

establish and grow the new business lines authorized by the BUILD Act, such as equity finance and 

project specific technical assistance. As DFC expands its financing, loans and guarantees, these tools are 

likely to require incrementally more credit subsidy because of the greater focus DFC will have on less 

developed countries. Current global conditions make the equity program more important than ever. DFC 

is already building on its well-established funds products and expanding in new directions to reach a 

broader set of partners, including through direct equity investments. As DFC continues to launch new 

products and partnerships and to focus in new markets, DFC’s mix of business will naturally be in flux. A 

combined programmatic request allows flexibility to use the most appropriate tool for each situation.

Technical Assistance and Feasibility Studies

Technical assistance and feasibility studies designed to complement DFC programming will cover a wide 

range of activities tailored to the specific needs of individual DFC transactions in order to develop 

projects for DFC investment and improve existing DFC projects. 
FY 2022 Budget Request DFC Page 10 

Early support for planning and project development enables more well-planned projects to get off the 

ground. By lifting specific projects to the level where DFC’s investment tools can scale the project, DFC 

technical assistance and feasibility studies are able to help enhance developmental impact. Among other 

things, and as noted above, DFC will fund technical assistance and feasibility studies to support the

identification, design, and implementation of DFC’s climate portfolio. This work will help DFC meet its 

climate mitigation, adaptation, and resilience investment goals. In addition, DFC technical assistance will 

increase the developmental impact of existing DFC deals. This will include helping DFC clients measure 

development impact and incentives for development additionality. Regular interactions between DFC 

and the interagency will ensure that this programing will not duplicate programming done by USAID, 

MCC, USTDA, or other agencies. 

Equity Program Funding 

While debt financing and political risk insurance remain foundational programs, one of the central 

components of the BUILD Act is the equity authority that allows DFC to play a new and catalytic role in 

mobilizing private sector capital to help meet foreign policy and development goals. The challenge is that 

funding for equity operations requires a significant commitment in the budget.

 

DFC sees direct equity investment as an invaluable tool to drive highly developmental and highly 

strategic investment over time, where more traditional lending or insurance products may not work as a 

commercial matter or may not provide the same medium to long-term benefits.

DFC continues to identify a robust number of potential equity investments from at least four sources: (1) 

co-investment rights in most or all invested funds, (2) reviewing loan and insurance portfolios for 

companies or projects that are good candidates for equity investment, (3) referrals from other DFI 

partners and (4) direct business development opportunities.

DFC’s equity business is building on its long-standing processes to select managers and funds. Equity 

investing into funds makes DFC a more attractive partner to other DFIs, and as a result, offers another 

means to grow the agency’s portfolio and expand its impact. DFC is selecting experienced and successful 

fund managers to promote broad U.S. foreign policy and strategic goals including climate mitigation and 

adaptation, the global COVID response, women’s economic empowerment and investing in less 

developed countries in key policy areas and on strategic sectors that are important to U.S. interests. 

Further, with the funding necessary to properly use DFC’s equity authority, DFC will be able to invest on 

the same basis alongside the development finance institutions of close allies (e.g., the United Kingdom’s 

CDC, Germany’s DEG, France’s Proparco) and private sector partners (U.S. pension funds and financial 

institutions). 

 
FY 2022 Budget Request DFC Page 11 

FY 2022 Policy Priorities

DFC’s priorities for FY 2022, as outlined above, envision a set of sectors and regions within which DFC 

will especially deploy its tools and resources. Whether DFC is supporting investment in Africa, the IndoPacific, Eurasia and Eastern Europe, or the Western Hemisphere, DFC makes America a stronger and 

more competitive leader on the global development stage. It increases the ability of the United States to 

partner with allies on transformative projects that offer a sustainable, democratic, and inclusive approach 

to development. 

Regional Priorities

DFC is authorized to invest in more than 100 countries in Africa, Asia, Eastern Europe, Eurasia, Latin 

America, and the Middle East to address a broad range of challenges these regions face. Some of these 

regions targeted for close focus include sub-Saharan Africa, Southeast Asia, and the Northern Triangle 

region of Central America—all of which are home to both persistent development challenges and growing 

opportunities for potentially transformative private sector-led economic growth.

Sector Priorities

Climate

DFC will pursue an ambitious plan to increase the amount of investments in climate mitigation, 

resilience, and adaptation. Pursuing clean energy projects will allow DFC to address two of the most 

pressing problems facing the developing world today: the climate crisis and lack of access to reliable 

energy. DFC prioritizes energy access to ensure that there is a just transition from carbon-based energy 

sources without undercutting the critical development goal of rapidly expanding access to energy. Our 

efforts will contribute to economic growth and improved livelihoods and help position the United States 

as a global leader on climate action. 

DFC has committed to invest 33% of its overall commitments on climate-linked projects beginning in FY

2023, achieve a net zero emissions investment portfolio by 2040 (the earliest of any G7 country), and 

launch a $50 million technical development effort toward climate finance. The agency has already hired

its first Chief Climate Officer and issued its first call for proposals for climate-focused investment funds.

DFC’s development strategy will be renewed to include climate for the first time and to incorporate these 

clean energy targets. These efforts support the broader Biden-Harris Administration U.S. Climate Finance 

Plan, developed pursuant to President Biden’s Executive Order on Tacking the Climate Crisis at Home 

and Abroad (E.O. 14008). 

As DFC increases the composition of clean energy projects in its portfolio and phases out carbonintensive projects, DFC will continue to consider certain highly developmental fossil fuel electricity 

generation projects in instances where utilizing clean energy sources is not feasible or commercially 

viable. In all instances, greenhouse gas emissions for DFC projects will be accounted for and will not 

impede the agency’s attainment of its portfolio emissions reductions targets. DFC anticipates that 

commercially viable clean energy alternatives will become increasingly competitive with fossil fuel 

projects and that DFC will be able to gradually expand investments in natural climate solutions projects to 

sequester carbon.

Healthcare 

In FY 2022, DFC will build on the progress of its Global Health and Prosperity Initiative, which launched 

in FY 2020 and aims to invest $2 billion in projects that bolster health systems, support infrastructure 
FY 2022 Budget Request DFC Page 12 

development, and expand access to clean water. Development finance can strengthen global health 

systems by helping mitigate health risks and vulnerabilities through addressing ancillary factors that 

impact global health such as water, sanitation, and hygiene (WASH) and food and nutrition. To create 

more sustainable and resilient health systems, DFC will prioritize expanding digital health and IT, 

including telemedicine, data analytics, and contact tracing for communicable disease in developing 

countries, with a focus on low and lower middle-income countries. 

DFC seeks to increase investments focused on the manufacturing, production, and distribution capacity 

for vaccines and boosters, including the COVID-19 vaccine, to help increase vaccination rates and protect 

communities around the world thereby helping to accelerate the end of the pandemic. DFC seeks to 

strengthen the vaccine supply chain and last-mile logistics efforts to get health products to recipients in 

the most efficient manner including providing insurance coverage for shippers and others in the supply 

chain for vaccines. 

Financial Inclusion and Gender Equity 

In FY 2022, DFC’s 2X Women’s Initiative is committed to addressing the unique challenges women face 

globally and working to unlock the multi-trillion dollar opportunity they represent. DFC is a global leader 

on gender equity. Through U.S. leadership, other G7 countries have partnered through the 2X Challenge 

to drive additional investment, together catalyzing more than $4.5 billion of investment in the world’s 

women to date. In FY 2022, DFC will continue to seek opportunities to do more with its global partners 

as well as apply a gender lens to projects it considers ensuring that women will benefit.

In August 2020, DFC announced a new, ambitious commitment to mobilize an additional $6 billion in 

businesses that meaningfully advance gender equity in emerging markets to support women and girls, 

including those from marginalized communities and those who live in fragile and post-conflict settings. 

To support these robust goals, DFC aims to prioritize investments in women-owned and women-led 

firms, as well as partner with companies that intentionally incorporate gender-inclusive practices into 

their operations or products, including in the infrastructure sector. Additionally, DFC will continue to 

prioritize investments that improve the livelihoods and economic resilience of women and girls in 

marginalized communities through greater access to finance; off-grid and mini-grid energy systems; food 

security; water, sanitation, and hygiene systems; quality health care; education; and access to digital 

services.

DFC is working to improve the measurement and evaluation of the qualitative impact of investments on 

women and girls by strengthening DFC’s pre-investment screening and post-investment evaluations. 

Additionally, DFC will establish a 2X technical assistance product in FY 2022 and increase investment 

partnerships that leverage outside donor funds for technical assistance. 

To further institutionalize gender inclusive practices, DFC is developing a robust agency-wide genderlens training for all investment officers as well as hiring additional 2X staff to assist in expanding DFC 

gender equality work.

Information and Communications Technology

Research shows that investments in affordable, reliable, and trusted technologies are a powerful engine of 

prosperity and stability in the developing world. Trusted technologies enhance connectivity by helping 

expand access to healthcare, education, and food, and make business more efficient and secure. Yet many 
FY 2022 Budget Request DFC Page 13 

developing countries face a substantial digital divide due to the high costs of services and devices. DFC is 

committed to supporting private sector investment in internet and mobile service operators, 

telecommunications towers, fiber optic and subsea cables, and data centers as well as projects that are 

leveraging technology to tackle other challenges such as limited access to financial services.

By providing a transparent alternative to opaque financing avenues, DFC's investments in infrastructure 

are helping our partner countries build prosperous, sustainable futures free from malign influences.

Inclusive Growth 

DFC prioritizes projects with high developmental impact in low-income and lower middle-income 

countries with a focus on accelerating economic growth in indigenous and underserved communities to 

reduce extreme poverty and income inequality. Fostering inclusive economic growth requires addressing 

a major inhibitor of social and economic development: limited access of individuals and MSMEs (micro, 

small and medium enterprises) to financial services and capital. In many low and lower middle-income 

countries, women, microenterprise owners, indigenous communities, rural populations, and other 

financially disadvantaged populations lack the documentation or collateral needed to open bank accounts 

and obtain credit. 

As a result, traditional financial institutions are often unable to provide services to these groups, or are 

required to develop new risk assessment tools, such as creative balance sheet financing, assessments of 

digital records, and detailed questionnaires, to consider them as customers. 

Consequently, developing countries face a considerable credit gap that prevents many small businesses 

and especially women entrepreneurs from reaching their full potential. DFC has a long track record of 

providing loans to women and other underserved populations, including rural populations and youth 

previously working in the informal sector, to help them start and grow businesses. 

DFC consistently has been able to help increase access to credit for housing, education, agriculture, 

healthcare, and other development needs, as well as expand access to loans for MSMEs, and it will 

continue to do so. 

Financial Service Technologies for Underserved Populations 

Throughout the developing world, financial technology (fintech) has already begun to transform the 

financial services industry and expand access to financial services in developed and developing 

economies. In lowering costs, eliminating biases, and removing procedural and geographical challenges 

of traditional service delivery models, digital technologies open up new opportunities to previously 

unbanked populations, and they enable many MSMEs to transition to the formal sector, increase payment 

rates, and reduce their cost of capital more easily. DFC can help expand the reach of the financial sector 

and increase self-reliance in developed and less developed countries by investing in fintech solutions that 

address the needs of underserved populations.

Food Security & Global Supply Chain

DFC is committed to the principle that agricultural growth is one of the most effective pathways out of 

poverty. It generates income and demand for locally produced goods and services, strengthens supply 

chains and makes food and other necessities more affordable. Helping farmers earn a fair return, 

involving them in value-added processing, and linking them to global markets helps them emerge from 
FY 2022 Budget Request DFC Page 14 

poverty and gives them an incentive to stop farming elicit crops that drive the global drug trade and create 

insecurity in less developed countries. 

However, farmers, especially in the developing world, are faced with systemic risks in supply chains, 

financiers with limited ag-specific knowledge, and unsupportive regulations and financial infrastructure. 

Additionally, the COVID-19 pandemic has diminished recent gains in food security and disrupted global 

supply chains more broadly. To help address this, DFC will prioritize supporting private sector 

investment to achieve the U.S. goal of a world free from hunger, malnutrition and poverty, as set forth in 

the Global Food Security Act, reauthorized in 2018, and will continue to actively contribute to U.S. 

whole-of-government initiatives, such as Feed the Future, that work with the private sector to modernize 

and transform food systems. 
FY 2022 Budget Request DFC Page 15 

Summary and Conclusion

As discussed above, DFC respectfully submits its FY 2022 budget request of $450 million in program 

funds and $148 million for administrative expenses including project-specific transaction costs. The $450 

million in program funds will be flexibly allocated across credit subsidy, equity, technical assistance, and 

grants or other special projects and programs. This level of resources reflects the scale and complexity of 

the issues facing the developing world, and DFC’s need to engage and mobilize the private sector in 

meeting the challenges.

This request will allow DFC to help lead U.S. and like-minded partner efforts to remain the global leader 

in economic development and to provide financially sound alternatives to unsustainable state-directed 

initiatives. DFC is more essential than ever as a leading development finance institution and an 

increasingly vital instrument of U.S. policy, DFC is more essential than ever. As the developing world 

tries to recover from the impacts of COVID-19 and address the global threat of climate change, DFC’s 

presence is urgently needed to mobilize catalytic investments that drive inclusive and sustainable growth. 
FY 2022 Budget Request DFC Page 16 

Appendices

Appendix A: Appropriations Language 

Corporate Capital Account

The United States International Development Finance Corporation (the Corporation) is authorized to make 

such expenditures and commitments within the limits of funds and borrowing authority available to the 

Corporation, and in accordance with the law, and to make such expenditures and commitments without 

regard to fiscal year limitations, as provided by section 9104 of title 31, United States Code, as may be 

necessary in carrying out the programs for the current fiscal year for the Corporation: 

Provided, That for necessary expenses of the activities described in subsections (b), (c), (e), (f), and (g) of 

section 1421 of the BUILD Act of 2018 (division F of Public Law 115-254) and for administrative expenses 

to carry out authorized activities and project-specific transaction costs described in section 1434(d) of such 

Act, $598,000,000: Provided further, That of the amount provided--

(1) $148,000,000 shall remain available until September 30, 2024, for administrative expenses to 

carry out authorized activities (including an amount for official reception and representation 

expenses which shall not exceed $25,000) and project-specific transaction costs as described in 

section 1434(k) of such Act, of which $1,000,000 shall remain available until September 30, 2026; 

(2) $450,000,000 shall remain available until September 30, 2024, for the activities described in 

subsections (b), (c), (e), (f), and (g) of section 1421 of the BUILD Act of 2018, except such amounts 

obligated in a fiscal year for activities described in section 1421(c) of such Act shall remain 

available for disbursement for the term of the underlying project: Provided further, That if the term 

of the project extends longer than 10 fiscal years, the Chief Executive Officer of the Corporation 

shall inform the appropriate congressional committees prior to the obligation or disbursement of 

funds, as applicable: 

Provided further, That amounts made available under this paragraph may be paid to the "United States 

International Development Finance Corporation--Program Account" for programs authorized by 

subsections (b), (e), (f), and (g) of section 1421 of the BUILD Act of 2018:

Provided further, That funds may only be obligated pursuant to section 1421(g) of the BUILD Act of 2018 

subject to prior notification to the appropriate congressional committees and the regular notification 

procedures of the Committees on Appropriations: 

Provided further, That in fiscal year 2022 collections of amounts described in section 1434(h) of the BUILD 

Act of 2018 shall be credited as offsetting collections to this appropriation: 

Provided further, That such collections collected in fiscal year 2022 in excess of $598,000,000 shall be 

credited to this account and shall be available in future fiscal years only to the extent provided in advance 

in appropriations Acts: 

Provided further, That in fiscal year 2022, if such collections are less than $598,000,000, receipts collected 

pursuant to the BUILD Act of 2018 and the Federal Credit Reform Act of 1990, in an amount equal to such 

shortfall, shall be credited as offsetting collections to this appropriation: 
FY 2022 Budget Request DFC Page 17 

Provided further, That funds appropriated or otherwise made available under this heading may not be used 

to provide any type of assistance that is otherwise prohibited by any other provision of law or to provide 

assistance to any foreign country that is otherwise prohibited by any other provision of law: 

Provided further, That the sums herein appropriated from the General Fund shall be reduced on a dollarfor-dollar basis by the offsetting collections described under this heading so as to result in a final fiscal year 

appropriation from the General Fund estimated at $125,588,226.

Program Account

Amounts paid from "United States International Development Finance Corporation--Corporate Capital 

Account" (CCA) shall remain available until September 30, 2024: Provided, That amounts transferred to 

this account pursuant to section 1434(j) of the BUILD Act of 2018 (division F of Public Law 115-254) shall 

be merged with and available for the same time period and purposes as provided herein: Provided further, 

That up to $500,000,000 of amounts paid to this account from CCA or transferred to this account pursuant 

to section 1434(j) of the BUILD Act of 2018 (division F of Public Law 115-254) shall be available for the 

costs of direct and guaranteed loans provided by the Corporation pursuant to section 1421(b) of such Act: 

Provided further, That such costs, including the cost of modifying such loans, shall be as defined in section 

502 of the Congressional Budget Act of 1974: Provided further, That such amounts obligated in a fiscal 

year shall remain available for disbursement for the following 8 fiscal years: Provided further, That the total 

loan principal or guaranteed principal amount shall not exceed $10,000,000,000

Transfer of Funds Authority

7009. (b) AVAILABLITY OF FUNDS FOR THE DEVELOPMENT FINANCE CORPORATION.— 

(1) Funds appropriated by this Act and prior Acts making appropriations for the Department of State, 

foreign operations, and related programs and transferred to the United States Development Finance 

Corporation pursuant to section 1434(j) of the BUILD Act of 2018 (division F of Public Law 115–254) 

shall be paid to the United States International Development Finance Corporation Program Account. 

(2) Funds appropriated under the heading "Economic Support Fund" directed to implement the Nita M. 

Lowey Middle East Partnership for Peace Act by application of section 7019 of the Department of State, 

Foreign Operations, and Related Programs Appropriations Act, 2021 (Fiscal Year 2021 Act) shall be 

excluded from the limitation on transfers pursuant to section 1434(j) of the BUILD Act of 2018 (division 

F of Public Law 112–54) contained in section 7009(c) of the Fiscal Year 2021 Act. 

(3) Whenever, in coordination, the Chief Executive Officer of the Millennium Challenge Corporation 

determines that it is in furtherance of the purposes of Millennium Challenge Act of 2003 (title VI of division 

D of Public Law 108–199, as amended), and the Chief Executive Officer of the United States International 

Development Finance Corporation determines that it is in furtherance of the purposes of the BUILD Act of 

2018 (division F of Public Law 115–254), funds appropriated under the heading Millennium Challenge 

Corporation in this or prior Acts may be transferred to and merged with amounts under the heading United 

States International Development Finance Corporation—Program Account: Provided, That, when so 

transferred and merged, such funds shall be available for the costs of loans and guaranties provided by the 

United States International Development Finance Corporation pursuant to section 1421(b) of the BUILD 

Act and shall be subject to the limitations provided in the second, third, and fifth provisos under the heading 

United States International Development Finance Corporation—Program Account found in Public Law 

116–260: Provided further, That such funds shall not be available for administrative expenses of the United 

States International Development Finance Corporation: Provided further, That the exercise of such 

authority shall be subject to the regular notification procedures of the Committees on Appropriations: 

Provided further, That the transfer authority provided in this section is in addition to any other transfer 

authority provided by law.
FY 2022 Budget Request DFC Page 18 

Appendix B: Fiscal Year 2020 in Review 

Areas of Focus

Sectors 

Critical Infrastructure, including ICT

DFC made catalytic investments in critical infrastructure, including information and communications 

technology (ICT), to create jobs and foster economic growth. Examples of investments in critical 

infrastructure include roads, ports, power plants, transmission lines and port and harbor operations.

DFC is a key agency in the whole-of-government effort to improve connectivity and cybersecurity and 

supported targeted measures, including in the Indo-Pacific, to expand U.S. support. For example, DFC 

provided a $190 million loan to Trans Pacific Networks (TPN) to support the construction and operation 

of a 15,200 kilometer telecommunications cable directly connecting Singapore, Indonesia, and the United 

States and serving other markets in Southeast Asia and the Pacific. The TPN cable, with financing from 

DFC, will be the longest telecommunications cable in the world.

Table I: Examples of DFC investments in critical infrastructure, including ICT, in FY 2020

Project Name Country Product Amount Description

Nouakchott 

Container

Terminal

Mauritania Insurance $24.8 M

Development, construction, and operation of a 

new container and oil terminal in the port of 

Nouakchott expanding infrastructure capacity

Frontiir Myanmar Finance $40.0 M

Expansion of a fixed wireless broadband network 

to provide internet service to households and 

SMEs improving ICT infrastructure in country

Asia Partners Asia 

Regional Equity $25.0 M

Fund will invest in businesses introducing 

innovative technology platforms in Southeast 

Asia; investments will help reduce costs for 

SMEs, facilitate trade, and foster innovation

Energy

DFC investments in FY 2020 facilitated access to reliable and affordable energy and improved quality of 

life, business activity, food production, and access to healthcare and education. Coverage by DFC’s 

support of to the Solar Energy Transformation Fund for up to $6 million facilitated financing for the solar 

power production of telecommunication towers across the low-income country of the Central African 

Republic. A $50 million loan commitment by DFC is funding the development and construction of a 100-

megawatt solar power project in Rajasthan, India. DFC energy projects, whether in sub-Saharan Africa, 

central Asia, or other locales around the globe, critically contribute to long-term social and economic 

development goals. Access to energy is integral to economic growth and inclusion in all countries.
FY 2022 Budget Request DFC Page 19 

Table II: Example of DFC investments in energy in FY 2020

Project Name Country Product Amount Description

Gigawatt 

Global 

Burundi

Burundi Insurance $12.4

Construction and operations of a 7.5 MW solar 

power plant; country’s first utility-scale solar 

plant by country’s first independent producer

Healthcare

DFC is focused on creating a healthier world by investing in projects that help to address persistent 

healthcare challenges in the developing word. DFC worked in FY 2020 to mobilize private investment in 

hospitals, health clinics, and other projects expanding access to healthcare, clean water, and sanitation. 

The Health and Prosperity Initiative is a new effort started by DFC in May 2020. The launch included a 

call for proposals from private sector entities seeking DFC support for health-related investments in 

developing countries. DFC seeks to invest between $5 million and $500 million per eligible project and

commit up to an aggregate $2 billion across eligible projects through the Health and Prosperity Initiative.

DFC also aims to mobilize an additional $3 billion in private sector capital alongside its investments. 

DFC is supporting projects that support the global COVID-19 response through the Health and Prosperity 

Initiative and broader agency efforts to mitigate the impact of this unprecedented global pandemic. In 

addition, many of DFC’s portfolio projects support efforts to address the impacts of COVID-19. For 

example, OPIC financed a $4 million special lending vehicle to Azure Source Capital in FY 2018, and 

Azure, during the FY 2020 global pandemic, supported loans to small cities and rural communities for 

investments in water pumps, pipelines, and storage tanks to improve water supply and accessibility.

Table II: Examples of DFC investments in healthcare in FY 2020

Project Name Country Product Amount Description

Gamma 

Knife Center Ecuador Finance $3.2 M Acquisition and expansion of clinic with Gamma Knife radiosurgery to treat cancer

Gradian 

Health Systems

Africa

Regional Finance $1.4

Guaranty to support distribution, installation, 

training, and servicing of medical devices for 

low-resource health clinics in Africa

Regions

Investment in the Western Hemisphere 

The U.S. Government seeks to catalyze private sector investment in infrastructure in Latin America and 

the Caribbean through a whole-of-government approach channeling the resources and expertise of many 

U.S. government agencies to help countries attract investment. These efforts aims to spur sustainable and 
FY 2022 Budget Request DFC Page 20 

inclusive growth in these vital regions and also help address directly the root causes of irregular 

migration. 

DFC investments in FY 2020 supported these efforts. A DFC loan of $200 million was approved in July 

2020 for Banco Industrial in Guatemala. The loan will enable Banco Industrial to expand lending to 

Guatemala’s SMEs which face a $14 billion credit gap limiting abilities to expand, increase revenues, or 

create jobs. The project will dedicate at least 30 percent of loan proceeds to women, and there will be a 

special emphasis on expanding capital access to rural borrowers across Guatemala.

Table I: Examples of FY 2020 DFC investments supporting investment in the Western Hemisphere 

Project Name Country Product Amount Description

Itaú 

Unibanco 

2020

Brazil Finance $400 M

Loan proceeds to support expansion of SME 

loan portfolio with 35% to economically 

disadvantaged regions and 30% to 2X businesses

Banco 

Davivienda Colombia Finance $250 M

Tier 2 subordinated loan to support lending to 

SMEs and low income housing with at least 30% 

of loan proceeds as 2X loans

Indo-Pacific

DFC is committed to advancing a free and open Indo-Pacific. DFC investments in the Indo-Pacific in 

FY 2020 contributed to advancements in trade, innovation, and technology and are actively helping 

the region transform into a global leader. 

DFC investments in the Indo-Pacific in FY 2020 included a $190 million loan to the Nevada-based Trans 

Pacific Network (TPN). The loan is helping finance the world’s longest telecom cable connecting 

Singapore, Indonesia, and the United States and improving digital connectivity across the Indo-Pacific.

DFC is committed to investments in secure telecommunications infrastructure in the Indo-Pacific. 

DFC is helping shape the digital landscape in Southeast Asia through an up to $25 million investment in 

FY 2020 to support Asia Partners I LP. Asia Partners I LP is a fund investing in businesses introducing 

innovative technology platforms in Indonesia, Vietnam, the Philippines, and Malaysia. The investments 

by Asia Partners, supported by DFC, will reduce costs for SMEs, facilitate trade, and foster innovation.

DFC supported food security in the Indo-Pacific region in FY 2020 through a $10 million loan to Milk 

Mantra, a dairy company working with small farmers in northeast India. An additional $371 thousand was 

contributed by DFC to the Milk Mantra project for technical assistance (TA) to enhance the impact of the 

DFC loan. The TA will include farmer training, cattle health services, and a financial services program.
FY 2022 Budget Request DFC Page 21 

Table II: Examples of DFC investments in healthcare in FY 2020

Project Name Country Product Amount Description

Milk Mantra India Finance $10.0 M

Expansion of a dairy company committed 

to ethical sourcing from smallholder 

farmers in northeast India

Goyol Cashmere Mongolia Finance $5.0 M

Loan to help local producer of wool and 

cashmere knitwear construct a new factory and 

purchase equipment to expand production

Africa

DFC worked in FY 20 to continue and expand its focus on Africa, including by deploying seven officers 

to the continent to launch the Africa Investment Advisors Program and by deepening its partnerships with 

the interagency Prosper Africa and Power Africa initiatives.

DFC made several commitments under the Prosper Africa initiative in FY 20, including a $14 million 

loan guaranty to World Business Capital that will expand lending to SMEs in Nigeria and an investment 

of up to $25 million to support SPE AIF I LP, a fund which will invest in expanding access to healthcare 

and education, strengthening supply chains, and streamlining logistics in North and Sub-Saharan Africa. 

As a part of the mission to support Prosper Africa’s goals, in July DFC launched the Africa Investment 

Advisor Program, which establishes our regional team based in Africa. The team equips DFC to more 

proactively advance investments and expand its portfolio in this priority region, enhancing deal sourcing 

and interagency coordination particularly as Africa continues to respond to both the health and economic 

fallout from the COVID-19 pandemic.

DFC also continued its leading support for Power Africa in FY 20. Among DFC’s Power Africa 

transactions in FY 2020 was one in Kenya, a where only 60 percent of the rural population has access to 

electricity. DFC provided a direct loan of $20 million to support a $65 million financing mechanism from 

Solar Frontier Capital enabling local supply of solar home systems. By providing continued access to 

sustainable local currency financing, this Brighter Life Kenya project will bring affordable energy to 

270,000 households in Kenya and about 1.2 million people. 

DFC also worked on a Power Africa partnership transaction in FY 2020 in the Republic of Burundi. DFC 

is providing reinsurance to support the development and operation of Burundi’s first utility-scale solar 

power plant by Burundi’s first independent power producer. The reinsurance is provided to Liberty to 

increase underwriting capacity and support development in countries where investors have difficulty 

obtaining PRI. The Gigawatt Global Burundi project is expected to add 14 percent additional power 

generation capacity for the country, an especially important contribution because lack of steady and 

affordable electricity is viewed as a primary impediment to economic development in the country.
FY 2022 Budget Request DFC Page 22 

Gender

2X Women’s Initiative 

The DFC, 2X addresses the many barriers which women in emerging markets and developing countries 

face in fully participating in their local economies. 

DFC’s 2X Women’s Initiative has mobilized more than $3 billion in capital to businesses and funds 

owned by, led by, or supporting women. In 2020, DFC committed $2.5 billion of investment in projects 

that advanced the 2X Women’s Initiative. Since its inception, 2X has catalyzed $7 billion towards gendersmart investments 

COVID-19 Response

In the months after DFC launched, COVID-19 presented an unprecedented health and liquidity crisis that 

left developing countries particularly vulnerable. While many communities lacked healthcare 

infrastructure or even running water, stay-at-home orders and border closings made it difficult for

businesses to operate and choked supply chains of food and other essential goods. DFC launched a swift 

and multi-pronged approach to preserve both lives and livelihoods. DFC launched a $4 billion rapid 

response liquidity facility and took other steps to provide additional support to portfolio projects impacted 

by the pandemic. A tier-2 capital loan of up to $250 million made through this facility is helping Africa 

Finance Corporation (AFC) continue serving new and existing borrowers across the continent as a lowcost source of financing in the wake of COVID-19. 

DFC also launched a Global Health and Prosperity Initiative to provide up to $2 billion in financing for 

health projects and targeting an additional $3 billion in private-sector investment. DFC financing through 

a Citi framework agreement is helping New York-based Gradian Health Systems, Inc. distribute ventilators 

and anesthesia machines designed with long-duration battery power for safe and effective use in challenging 

settings with limited access to electricity and medical oxygen. 

Table II: Examples of DFC 2X investments in FY 2020

Project Name Country Product Amount Description

Root Capital Worldwide Finance $35 M

Loan portfolio guaranty for agricultural 

cooperatives and SMEs supporting COVID-19 

response efforts in countries worldwide

Banco Pichincha Ecuador Finance $150 M

An up to $150 million direct loan to 

expand lending to MSMEs owned by, 

led by, or supporting women.

SEAF COVID-19

Emergency Loan 

Finance LLC

Worldwide Finance $20 M

Global loan facility to support emergency 

lending to SMEs in DFC-eligible countries that 

meet the 2X Women’s Initiative criteria 
FY 2022 Budget Request DFC Page 23 

Appendix C: Budget by Object Class

FY2020 FY2021 FY2022

Actuals Projected Budget

Personnel Compensation & Benefits 59,578,409 72,961,581 76,111,153

Travel and transportation of persons 2,534,832 4,484,678 8,725,842

Rental payments to others 8,624,383 9,583,975 8,471,049

Communications 1,015,788 1,222,383 1,505,247

Printing and reproduction 48,570 246,552 241,552

Other contractual services 15,763,105 19,329,781 14,101,858

Advisory and assistance services 10,245,032 13,922,167 16,291,150

Representation Expense 3,208 25,000 25,000

Other goods and services from Federal sources 421,992 400,000 354,097

Operation and maintenance of facilities 27,770 610 159,150

Operation and maintenance of equipment 16,206,153 21,506,960 19,316,442

Supplies and materials 2,089,429 2,348,545 1,945,077

Equipment 623,854

Land and structures 128,530

Total 116,558,670 146,032,233 148,000,000

1 Carry-Forward balances from prior fiscal years enable obligations greater than the current year appropria

Budget Object Class