Washington, D.C, October 15, 2022 – The International Finance Corporation (IFC), a member of the World Bank Group, signed a new agreement today with the Government of Luxembourg to support low- and middle-income countries in market creation and private sector investment. The Ministry of Finance of Luxembourg will provide up to €9 million through the Luxembourg-IFC Partnership Program (LIPP) to support IFC's advisory and upstream activities.
The Ministry of Finance of Luxembourg is supporting IFC's efforts to strengthen corporate governance and small and medium-sized enterprises, develop local capital markets, address money laundering, and improve the business environment for private sector companies. The partnership between the Grand Duchy and IFC also helps scale up support to cross-cutting themes like gender and inclusion, transparency, sustainability and competitiveness. This new agreement extends a longstanding partnership with the Ministry of Finance of Luxembourg for four more years.
"Market creation and private sector investment is critical for our client countries as they try to address the impact of numerous crises including conflicts, the COVID-19 pandemic and climate change. Luxembourg has long been IFC's partner in creating the conditions to mobilize private sector capital”, said Makhtar Diop, IFC Managing Director. "We will continue to work closely together to address a wide range of global challenges through our support for private sector development.”
"For the Luxembourg Ministry of Finance, IFC is the premier partner to foster innovative partnerships that help create markets and mobilize private sector investment for development,” said Yuriko Backes, Minister of Finance of Luxembourg. "Through our longstanding partnership, we aim to incubate new ideas and scale up proven solutions through knowledge transfer, building business and institutional capacity. Together, we channel resources to initiatives that improve the lives of the poor, empower women and youth, and promote sustainable private sector development.”
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org
The Ministry of Finance's core support for the fight against poverty is an active policy to promote sustainable economic development of the private sector in developing countries. The Ministry's actions focus on supporting economic growth in developing countries while respecting social inclusion and environmental sustainability. Only inclusive and sustainable economic growth can generate stable and well-paid jobs, thereby improving living conditions in developing countries. The Ministry of Finance's share amounts to about 10% of Luxembourg's total official development assistance (ODA) and focuses mainly on the financing of programs set up by the Multilateral Development Banks. The country currently invests 1% of its gross national income in development aid, making it one of the most committed countries in development cooperation.
Press release by the Ministry of Finance and the International Finance Corporation (IFC)