At the end of 2020 the majority of countries, particularly emerging markets, were in recession stemming from the fallout of COVID-19, with the impact on financial institutions being highly correlated to the macroeconomy. Given the scale of the challenge, support was needed not only to mitigate the worse effects of COVID-19, but also for FIs and their clients to adapt and build resilience against future impacts e.g. from further waves, other pandemics, or natural disasters. Furthermore, Global FDI flows fell 49% in the first half of 2020 compared to 2019, with evidence of capital flight particularly from emerging markets; UNCTAD reported a 28% fall in foreign direct investment to Africa and a 12% fall in Asia in this period.
In this context, DFIs and Impact Funds provided critical support as counter-cyclical investors via multiple investment solutions – equity financing, debt financing, and technical assistance - supporting institutions and businesses with their immediate liquidity needs and enabling them to meet the economic and health challenges of the crisis. Beyond capital, investor thought leadership and collaborations ranged from guidelines on borrower payment deferrals to principles for technical assistance e.g. client and job protection and remote working.
Join us for a panel conversation and Q&A to hear further insights on a variety of key investor COVID-19 responses, including case studies ranging from microfinance to trade finance facilities, examples of collaboration, and lessons learnt for future crises.
|Event Date||10-06-2021 2:00 pm|
|Event End Date||10-06-2021 3:30 pm|