IFC and the Spanish Ministry of Economy and Digital Transformation (Ministerio de Economa y Transformación Digital) have announced that the Spain-IFC Technical Assistance Trust Fund will be replenished. The goal of this is to increase private sector investments in Latin America and Africa. The Spanish government will contribute €4 million to the Trust Fund.
Spain’s assistance will strengthen IFC’s efforts to help create markets and jobs and fuel economic recovery in the two regions, which have been severely impacted by a confluence of crises such as climate change, supply chain disruptions, high inflation, and the knock-on effects of Ukraine’s war. The partnership’s goal is to promote economic and social resilience by focusing on issues such as climate change, financial services, gender, and renewable energy, among others.
“Public-private collaboration is critical to addressing current challenges and meeting the needs of the twin green and digital transitions,” said Nadia Calvio, Deputy Prime Minister of Spain and Minister of Economic Affairs and Digital Transformation. “The IFC plays a critical role in mobilizing global investment. Spain is an important member of the World Bank Group, and we will continue to contribute to this goal.”
The replenishment will assist in funding the IFC’s regional advisory and upstream efforts, which aim to create market conditions that attract capital and lead to long-term investments. The assistance will also allow IFC to collaborate with clients to improve their operations while strengthening local supply chains and communities.
“As economies in Latin America and Africa face new challenges in the face of overlapping global crises, the support of partners like Spain will allow IFC to deliver on its critical development mission,” said Makhtar Diop, Managing Director of IFC. “With the replenishment of the Spain Global Trust Fund, we are determined to support our clients even further while assisting them in realizing their economic potential through increased private sector investments, thereby contributing to green growth, inclusion, and job creation.”
Through its partnership with Spain, the IFC has been able to fund a wide range of advisory and upstream projects in infrastructure, the development of the financial sector, the investment climate, and other areas around the world since 1998. IFC also collaborates with multinational corporations and mid-sized businesses interested in investing in emerging markets. As of June 2022, the IFC had a portfolio of long-term investments with Spanish partners worth nearly $2.8 billion. These investments were spread across a number of sectors and regions.
