The agreement was signed by Portugal’s Minister of State and Finance, Joaquim Miranda Sarmento, and IFC Vice President, Ethiopis Tafara, during an informal meeting of finance ministers from the Community of Portuguese Language Countries (CPLP) in the U.S. capital, where the spring meetings of the International Monetary Fund (IMF) and the World Bank are taking place this week.
The fund was established with a contribution of 1.5 million euros from Portugal and will be managed by the IFC, according to the Ministry of Finance.
“We have signed a financing instrument for these countries. The Lusophony, the CPLP, and the PALOP [Portuguese-Speaking African Countries] are a fundamental axis of Portugal’s policy, regardless of the governments. It is something that is consistent and transcends different governments and political combinations, and it is very important for us,” said Joaquim Miranda Sarmento today in Washington.
“These are countries with which we have a strong historical, cultural, social, and political relationship, with whom we have significant bonds of friendship. These countries offer investment opportunities and wealth generation for Portuguese companies, helping them to internationalize increasingly,” he added.
The fund, dubbed ‘Portugal-IFC Partnership in Lusophone Africa,’ is a strategic initiative aimed at strengthening technical cooperation between Portugal and Portuguese-speaking African countries under the Lusophone Compact, an initiative with which the IFC is a partner.
The initiative seeks to fund essential technical assistance activities to leverage the implementation of bankable projects, focusing on closing the infrastructure gap, developing productive sectors, and promoting financial inclusion with an approach that integrates social, environmental, gender, and governance dimensions, according to official sources.
The Lusophone Compact for Development Financing is a strategic initiative launched in November 2018 that brings together the African Development Bank Group, Portugal, the PALOP, and Brazil (starting in 2024) with the goal of accelerating sustainable, inclusive, and diversified private sector growth in the region.
The Compact aims to mobilize and leverage private investments and public-private partnerships through a combination of financing, guarantees, technical assistance, and policy reforms that remove barriers to development.
The IFC became a partner of the Lusophone Compact in 2021, given the shared objectives.
