- Date written
- May, 2021
- Contact for guarantco
- Marjolein van Kampen
- Communications Director
- +44 (0)738 8857097
Global Affairs Canada (GAC), a department of the Government of Canada, is providing CAD 40 million (c. USD 31.8 million) through a repayable contribution to Private Infrastructure Development Group (PIDG) company, GuarantCo, to enhance affordable and sustainable infrastructure credit solutions in low-income countries and fragile states across Africa and Asia. The funding will be used to finance essential infrastructure, develop local capital markets and help economies grow by mobilising additional capital towards the Sustainable Development Goals (SDGs) aiming to reduce poverty.
The partnership will help to support PIDG’s and GuarantCo’s gender-responsive approach to infrastructure investment in alignment with Canada’s Feminist International Assistance Policy. PIDG and GuarantCo view the Canadian government’s strong gender advocacy as a significant benefit allowing PIDG to further enhance its gender policies and processes. GuarantCo contributes to the implementation of the PIDG Gender Equity Action Plan and the collaboration with GAC will further accelerate progress.
This initiative will help to demonstrate that investments in low-income countries and fragile states are not only possible but that they can mobilise significant additional private capital towards the SDGs to ensure sustainable and inclusive economic growth.
The Honourable Karina Gould, Canada’s Minister of International Development, said:
“This initiative with GuarantCo is a key opportunity to address the financing gap in infrastructure in Africa and Asia by mobilizing private sector investment.”
Emily Bushby, Interim CEO of GuarantCo, said:
“We are proud that Canada has decided to invest in GuarantCo, particularly to support PIDG and its companies to further build and implement its gender equity agenda. The investment will enable GuarantCo to leverage this facility three times to mobilise a portfolio of up to CAD 120 million (c. USD 95 million) of guarantees. It will provide increased capacity to grow GuarantCo’s portfolio, enabling us to achieve our strategic and development objectives with the associated positive impact to our external stakeholders, including ratings agencies, to further diversify our funding base.”
Philippe Valahu, CEO of PIDG, said:
“We are delighted that the Canadian Government is investing in GuarantCo. We are particularly pleased that this investment aims to enhance gender initiatives. As a group, PIDG has developed a robust Gender Equity Action Plan which provides us with a roadmap for continuous improvement in our investments and in our companies. PIDG is adopting a deliberate climate and gender lens to screen both risks and potential of its infrastructure investments and we are looking forward to working closely together with GAC to accelerate gender inclusivity further the global gender agenda.”