On September 7, the Japan International Cooperation Agency (JICA) and the International Finance Corporation (IFC)* renewed the Memorandum of Cooperation (MOC) to promote coordinated investments and loans to the private sector in developing countries. The MOC has been renewed. The signing took place online between JICA Director Keiichiro Nakazawa and IFC Vice President Ruth Horowitz.
The role of the private sector in the socioeconomic development of developing countries is growing every year. For example, in recent years, private-sector funds have greatly exceeded public-sector funds such as ODA in terms of financial inflows to developing countries, and technological innovation and digitalization have expanded business opportunities for companies. On the other hand, epidemics and instability in the international situation are affecting the social economies of developing countries, and developing countries continue to face enormous development demands.
JICA and IFC signed a Master Cooperation Agreement (MCA) in April 2015 and a Memorandum of Cooperation (MOC) in May 2017 to deepen cooperation and collaboration in order to respond to the development needs of developing countries. In particular, under the MOC, we have been deepening cooperation and collaboration in the area of cooperative investment and financing. The MOC, in particular, includes measures to strengthen cooperation in the structuring and review process, such as harmonization of review procedures for co-investment projects and strengthening of communication through periodic consultations. By May 2022, JICA and IFC had achieved a total of approximately US$1.64 billion in cofinanced investments and loans, thus meeting the MOC’s goal.
The updated MOC targets a total of $1.5 billion in co-investment over a five-year period, with a newly articulated area of cooperation including the promotion of digitalization and gender equality, as well as strengthening collaboration from the early stages of project development.
JICA will continue to meet the financing needs of the private sector in developing countries, while working closely with other development finance institutions such as IFC to contribute to solving development issues.
(Note) IFC
A member of the World Bank Group. One of the world’s largest international financial institutions specializing in providing assistance to the private sector in developing countries. Through cooperation with the private sector in about 100 countries around the world, the Bank helps to eradicate extreme poverty and promote shared prosperity.
© Source JICA