IFC managing director Makhtar Diop and Luxembourg’s finance minister Yuriko Backes signed a new agreement on 15 October. The agreement will help promote private sector development. International Finance Corporation

IFC managing director Makhtar Diop and Luxembourg’s finance minister Yuriko Backes signed a new agreement on 15 October. The agreement will help promote private sector development. International Finance Corporation

Together with the International Finance Corporation (IFC), Luxembourg is helping to strengthen small businesses, develop local capital markets, and tackle money laundering in low- and middle-income countries.

The agreement, signed by Luxembourg’s ministry of finance and the IFC on 15 October, extends a longstanding partnership for an additional four years. The finance ministry will provide up to €9m through the Luxembourg-IFC Partnership Program (LIPP) to support IFC’s activities. It will help scale up support for gender equality and inclusion, transparency, sustainability and competitiveness.

“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 Luxembourg’s finance minister  (DP). “Together, we channel resources to initiatives that improve the lives of the poor, empower women and youth, and promote sustainable private sector development.”

“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,” 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.”

A strong, sustainable partnership

As of June 2021, IFC’s long-term investment portfolio with Luxembourgish sponsors amounted to $135m. Companies in Luxembourg have benefitted from co-investments with IFC while contributing to development in low- and middle-income countries.

IFC also collaborates with the Luxembourg stock exchange to promote green finance and sustainable growth. In May 2018, Luxembourg committed to providing €1m to IFC’s Green Bond Technical Assistance Program (GB-TAP). It complements the , which is the world’s largest targeted green bond fund and is listed on the Luxembourg stock exchange. The programme aims to support climate finance by developing green-bond policies, training bankers and executives, and helping countries adopt best practices.

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