Washington, D.C., April 8, 2025— IFC today launched a call for expression of interest for eligible financial services providers (FSPs) to become intermediaries under the Catalytic First Loss Guarantee Facility under IFC’s Micro, Small, and Medium Entreprise (MSME) Finance Platform.
The primary objective of the facility is to increase access to financing for women-owned businesses, agriculture and climate financing for MSMEs. The facility also aims to demonstrate their commercial viability as a financing segment, and test new products, services, and risk criteria for these critical market segments. It will provide a first loss guarantee for third-party eligible FSPs to facilitate the scaling up of lending to MSMEs, boosting economic growth and driving job creation.
MSMEs make up over 90% of all firms and account, on average, for 70% of total employment and 50% of GDP worldwide. The MSME finance gap now stands at $5.7 trillion – a number that swells to $8 trillion when informal enterprises are included.
Adel Meer, Global Manager for Financial Inclusion stated: "We are excited by the opportunity to partner with local financial services providers to mobilize local currency to extend credit to underserved MSMEs. Expanding access to finance for MSMEs contributes to GDP and boosts exports, helps create and sustain jobs, and is crucial in supporting a key engine of growth in emerging markets.”
Eligible FSPs include regulated banks, non-bank financial institutions, digital lenders, leasing companies, and microfinance institutions authorized to carry out lending or leasing activities according to the applicable legislation in their respective countries. FSPs must comply with IFC's qualification criteria, including satisfactory Environmental & Social Risk Rating (ESRR) and Integrity Due Diligence (IDD), financial capability, developmental impact, and operational capability.
For more information or questions regarding the call, eligible applicants may contact IFC via email at ifcfigcatalyticfirstloss@ifc.org.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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