Dili, October 24, 2023 – The United States Agency for International Development (USAID)/Timor-Leste facilitated the first U.S. International Development Finance Corporation (DFC) loan to be approved for a Timorese microfinance institution. The USD $3 million loan will be used by recipient Kaebauk Investimentu no Finansas (KIF) to promote access to finance for women and rural microenterprises to support increased economic opportunities.
DFC announced the approval of the $3 million KIF transaction on October 5, 2023, as part of more than $9.1 billion of DFC commitments to 132 new projects for Fiscal Year 2023 to advance developmental impact and strategic priorities around the world. DFC’s commitments reflect the pressing need to address many of the world’s greatest challenges through the mobilization of private sector capital.
USAID/Timor-Leste initiated the DFC transaction in support of USAID’s development goal to expand the economic inclusion of women and youth. USAID/Timor-Leste will provide technical assistance to KIF for institutional strengthening to increase lending to underserved borrowers. KIF’s success, sustainability, and key role in the market will be integral for women, youth, and rural microenterprises to have greater access to credit in Timor-Leste.
About DFC: The U.S. International Development Finance Corporation partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, critical infrastructure, food security, and small business support. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.
About USAID/Timor-Leste: The United States Embassy in Timor-Leste, through USAID, works in partnership with the government of Timor-Leste to support broad-based and effective development. Since 2001, USAID has provided over $323 million in development assistance to Timor-Leste. USAID supports Timor-Leste in its efforts to build a more prosperous, healthy, and democratic country through programs that foster inclusive and sustainable economic growth, especially in the agriculture sector; improve the health of the Timorese people, particularly women and children; and strengthen the foundations of good governance – all areas highlighted in Timor-Leste’s Strategic Development Plan 2011-2030. Learn more here: www.usaid.gov/timor-leste, https://www.usaid.gov/timor-leste/cdcs