The FINANCIAL — IFC, a member of the World Bank Group, and the government of Denmark have signed a Memorandum of Understanding (MOU) on strategic cooperation for private sector development in developing countries during the World Bank Group Annual Meetings. The focus is Sub-Saharan Africa, fragile and conflict-affected states, climate change, and gender equality.
"Under the MOU, Denmark will contribute 25 million Danish kroner for selected IFC Advisory Services projects in fragile and conflict-affected states in Sub-Saharan Africa, and for projects focusing on gender equality. Denmark will also help increase cooperation between IFC and Danish companies, institutional investors, pension funds, the Industrialization Fund for Developing Countries, and other Danish entities," IFC reported.
“The new strategy for Danish development assistance has a strong focus on initiatives that support the development of the private sector in developing countries,” said Søren Pind, Danish Minister of Development Cooperation. “The private sector has a key role in fostering sustainable economic growth and job creation, which lift people out of poverty. IFC shares the purpose of Danish development assistance, which is to set people free and thereby enable them to escape poverty.”
IFC Executive Vice President and CEO Lars Thunell said: “The global economic crisis has underscored the importance of working closely with our partners in setting policy and strengthening market incentives for business activities that create opportunity for people to escape poverty and improve their lives. Sustainable markets and a vibrant private sector are essential to creating jobs and achieving lasting solutions to poverty.”
The Denmark-IFC partnership will ensure a strategic approach to maximize development impact. In fragile and conflict-affected countries in Sub-Saharan Africa, funds from the Danish government will help IFC Advisory Services improve the business environment, rebuild financial markets, promote microfinance, and stimulate private sector investment in infrastructure. Danish contributions will also help promote gender equality.
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