The ACP region continues to attract the highest allocations of new capital from EDFIs, both in value and in number of deals. In 2013 EDFIs invested in a total of 202 new deals in ACP, amounting to USD 2.5bn of new investment. This level is significantly above the average of 51 deals amounting to USD 669m and the next highest; South Asia at 70 deals and USD 1.1bn.
Comparing two DFIs
Comparing the allocations of EDFIs vs. the International Finance Corporation (IFC), the world’s largest DFI in terms of the size of DFI investments, over the period of 2008-2009, EDFIs had a notable slant towards the ACP region. EDFIs continued to increase the value of their investment by 19%, marking an increase of 1% in its portfolio. By comparison the IFC continued its focus on South America, while keeping their overall nominal allocation constant.
Despite the divergence of geographic focus, the increase in DFI investment in the wake of the Global Financial Crisis (GFC) signals a counter-cyclical element to the flow of DFI capital. It then follows that, in terms of contraction, when conventional forms of funding, such as debt, tend to diminish, there are greater investment opportunities for DFIs.