USAID Administrator Mark Green on the Creation of the U.S. International Development Finance Corporation (USIDFC)
I welcome the passage of the Better Utilization of Investments Leading to Development (BUILD) Act of 2018. The provisions of the BUILD Act fully aligns with the President's National Security Strategy and the Reshaping American Government in the 21st Century reorganization and reform plan.
The Act consolidates the Development Credit Authority (DCA) of the U.S. Agency for International Development (USAID) and the Overseas Private Investment Corporation (OPIC) into a reformed U.S. International Development Finance Corporation (USIDFC).
The creation of the USIDFC will accomplish the following: (1) align the United States Government's development-finance tools with broader foreign-policy and development goals, and enhance their competitiveness; (2) minimize risk to the American taxpayer by establishing appropriate risk-management protocols, including for co-investment with the private sector; and (3) increase efficiency by reducing duplicate efforts in the U.S. Government's development-finance programs.
Led by the National Security Council and the Office of Management and Budget, USAID participated in an interagency team which shaped the BUILD Act, and will manage the discussions on how to best implement it.
I expect USAID will work closely with the new USIDFC, both in Washington and in the field, including through staffing, strategic planning, research and development, and due diligence on transactions and investments.
The creation of the USIDFC creates a unique opportunity for USAID to scale up its use of financing tools for development significantly. USAID Missions will be able to take advantage of an expanded toolbox of financing options beyond guarantees (including loans, political-risk insurance and equity) and a broader range of private-sector expertise to support and reorient ongoing programs towards enterprise-led development.
The USIDFC will catalyze market-based, private-sector development, spur economic growth in less-developed countries, and advance the foreign-policy interests of the United States.