Proparco and IFC also signed a Memorandum of Understanding, in which they commit to further coordinate their interventions in fragile and least developed countries.
On the 12th April, Proparco adopted the Operating Principles for Impact Management. IFC led the development of the Principles, in collaboration with leading asset managers, asset owners, asset allocators, development banks, and financial institutions, including a three-month public stakeholder consultation. 60 international investors pledged today to uphold these principles, which set a new market standard for impact investing, bringing greater transparency, credibility and discipline to impact investing practices.
Proparco and the organisations that have adopted these guidelines thus commit to managing their impact investments according to 9 Principles. These Principles define what constitutes an impact investment and are intended to integrate impact considerations into all phases of the investment lifecycle. They will help Proparco fulfil its ambition to double its financial commitments while tripling its impact on development by 2020.
A commitment to further collaborate with IFC in fragile and least developed countries
Both Proparco and IFC’s CEOs, Gregory Clemente and Philippe Le Houérou respectively, also signed on the 12th April a Memorandum of Understanding intended to strengthen the partnership between the two development institutions, with a particular focus on fragile and least developed countries (LDCs).
Areas of reinforced collaboration will include information sharing, message coordination, identification and co-financing of development projects in fragile and LDCs. The following pilot countries have been identified: the Democratic Republic of Congo and the G5 Sahel countries (Burkina Faso, Chad, Mali, Mauritania, and Niger).
Supporting the private sector in fragile and least developed countries is one of Proparco's priorities, with the objective to commit €1Bn to these countries by 2020. The key role of the private sector and the importance of bridging the financing gap in fragile countries is the topic of the Proparco's Private Sector and Development magazine 27th issue.