The United States intends to assist women-owned and climate-focused enterprises more through a Microfinance facility.
In the recently concluded U.S. Pacific Island Summit, President Joe Biden also promised to pour money into the U.S. International Development Finance Corporation (DFC) and USAID to launch an up to $50 million flexible Microfinance Facility to expand access to finance for micro, small, and medium enterprises (MSMEs) in the Pacific Islands, with an emphasis on climate resilience and adaptation-focused enterprises, as well as women-owned enterprises.
“As a first step, DFC and USAID intend to issue an open expression of interest to gauge interest from financial institutions and learn about opportunities to mobilize lending in DFC-eligible countries in the Pacific Islands,” the fact sheet information stated.
“We’re also working to launch a new microfinance facility in the Pacific to expand access to finances for small businesses. We realize how difficult it is and how important it is,” Biden said in his remarks during the meeting with Pacific island leaders.
It added that the Department of Treasury is working with Congress to unlock significant new financing from the World Bank Group and the Asian Development Bank “to spur investments to support countries addressing global challenges like climate change and boost highly concessional funding for immediate crisis response in vulnerable countries like those in the Pacific. “
The United States, the statement said, is committed to securing strong replenishments for the International Development Association and the Asian Development Fund in 2024, with a significant focus on support for small states.