US development finance agency to act like sovereign wealth fund under Trump
US development finance agency to act like sovereign wealth fund under Trump
US International Development Finance Corp aims to be more like a sovereign wealth fund as it pivots toward higher returns and strategic sectors tied to US national security. US International Development Finance Corp aims to be more like a sovereign wealth fund, marking a significant transformation for an agency long associated with development lending in emerging markets. According to a memo circulated to staff on February 20, the agency intends to rebalance its mission — pairing traditional development goals with a sharper focus on financial returns and strategic geopolitical outcomes aligned with President Donald Trump’s foreign policy agenda. The internal document, titled “DFC Capital Allocation,” outlines a shift toward a more assertive investment model. Rather than functioning primarily as a development finance institution that catalyzes growth in lower-income nations, the agency now seeks to position itself somewhere between a development bank and a sovereign investment vehicle. Th…