(L-R) Makhtar Diop, IFC Managing Director, and Yuriko Backes, Luxembourg's Minister of Finance, in Washington DC, USA;
Credit: IFC
On Saturday 15 October 2022, the International Finance Corporation (IFC), a member of the World Bank Group, signed a new agreement with the Luxembourg Government to support low- and middle-income countries in market creation and private sector investment.
Luxembourg's Ministry of Finance will provide up to €9 million through the Luxembourg-IFC Partnership Program (LIPP) to support IFC's advisory and upstream activities.
More specifically, the ministry is supporting IFC's efforts to strengthen corporate governance and small and medium-sized enterprises (SMEs), develop local capital markets, address money laundering and improve the business environment for private sector companies. The partnership between the Grand Duchy and IFC is also expected to help scale up support for cross-cutting themes like gender and inclusion, transparency, sustainability and competitiveness. This new agreement extends a longstanding partnership between both parties 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 mobilise private sector investment for development", said Yuriko Backes, Luxembourg's Minister of Finance. "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".
