Word from the CEO
In 2023, FinDev Canada celebrated its five-year anniversary. While this Annual Report is about 2023, as CEO I can’t help but reflect on the fact that so much of what we accomplished last year benefited from the foundations put in place over those five years by all the people who have worked at the corporation, playing their part in making FinDev Canada the success it is today. To all employees – past and present – I sincerely thank you.
Looking at 2023, it was again a year marked by important accomplishments, but also strong reminders that global development challenges are worsening. A recurring theme in my interactions as CEO throughout the year can be summarized by three premises.
- First, we recognize that there are significant development challenges in emerging markets and developing economies, and that Canada plays an important role in supporting positive change to address them.
- Second, we know that the public sector – in both developing market governments and international donor countries – does not have the resources to address these global development challenges on its own. The scale is simply too great.
- Third, we see the private sector (both domestic and international), with its capital and its innovation, as critical to addressing these challenges and that it therefore must be harnessed for the benefit of emerging markets and developing economies.
This is why you have a DFI, and this is why the Government of Canada established FinDev Canada in 2018. Our mandate gives us the ability to play our part in addressing these challenges and realizing the opportunity that exists within them. We complement the range of different tools that Canada has in its toolkit to support development, with our specific focus on working with and through the private sector, globally and in the markets that we serve.
This Annual Report tells the story of our business performance and impact over the past year, guided by our commitment to building low-carbon and climate-resilient economies; developing markets to support quality job creation and access to finance, products and services that raise living standards and add value to local and regional economies; and mainstreaming gender equality to support women’s economic empowerment, reduce inequalities and improve business performance.
As CEO, I am proud to highlight some key indicators of our performance in 2023:
USD 275.6M
in new commitments signed this past year, including USD 28 million in LDCs
USD 153M
in climate finance provided in support of building a greener and more climate-resilient world
USD 162M
in commitments that qualify under the 2X Challenge in support of advancing women’s economic empowerment through better access to finance, leadership opportunities, quality employment and economic participation
USD 114.9M
in private capital mobilized
Overall, the corporation is now managing a portfolio that includes over CAD 800 million in assets – a number which is forecast to increase to CAD 4.8 billion over the next five years.
As noted, however proud we are of these successes, we realize that they come against the backdrop of a world in which the annual financing gap to achieve the SDGs and Paris Agreement commitments is growing. A world where not enough of the climate finance funding pledged is going to the markets that need it the most. A world where most of the sustainable infrastructure needed has yet to be built. As I represented FinDev Canada this past year in discussions with governments, fellow DFIs and multilateral development banks, institutional and other private sector investors and financiers, and a wide range of other stakeholders – whether it was at COP28, Climate Week, the World Bank meetings, the Global Environment Facility Assembly or the United Nations – the concern was the same. More is needed and quickly.
As we look ahead, FinDev Canada is poised to grow its impact and do its part to advance sustainable development with and through the private sector. In 2023, we received the first of three capital injections, which will enable the corporation to expand into the Indo-Pacific region and grow its portfolio in Latin America and the Caribbean, and Sub-Saharan Africa in 2024 and beyond. This growth will be supported by our first international office, located in the Indo-Pacific region. Our risk management frameworks have been modernized, enabling us to build on our strong risk-aware culture. And importantly, we have refreshed our Development Impact Framework (DFI) to build on our experiences and ensure that all our business decisions are informed by the impact we know we need to have in the markets we serve.
I want to thank our Board for their continued stewardship and guidance, our colleagues across the Canadian government for their support, and our clients and partners for the belief they show in our ability to deliver innovative solutions that make a difference. Finally, and most importantly, I want to extend my heartfelt thanks to the entire team at FinDev Canada for their passion for our mandate and delivering for our clients in support of sustainable and inclusive development.
Lori Kerr
Chief Executive Officer
FinDev Canada supports development through the private sector by providing financing, investment and blended finance solutions, as well as Technical Assistance and knowledge, to support sustainable and inclusive growth in emerging markets and developing economies (EMDEs), aligned with the Sustainable Development Goals (SDGs) and Paris Agreement commitments.
Our efforts to mobilize private investment in these markets are guided by our commitment towards:
Building low-carbon and climate-resilient economies, including through sustainable infrastructure;
Developing markets to support quality job creation and access to finance, products and services that enhance living standards and add value to local and regional economies; and
Mainstreaming gender equality investment activities to support women’s economic empowerment and gender equality, and improve business performance.
This commitment is reflected in our results. At the end of 2023, FinDev Canada had:
Over CAD 800 million in assets under management:
41 clients
in our portfolio, spread across Latin America and the Caribbean (LAC), and Sub-Saharan Africa (SSA)
30%
of all financial commitments have been in support of climate finance and 64% qualify for the 2X Challenge, which looks to advance women’s economic empowerment
18%
of the corporation’s portfolio is concentrated in the Least Developed Countries (LDCs)
To date, FinDev Canada’s financing and investment activities have supported more than 133,975 jobs in low- and middle-income countries. The private sector clients the corporation lends to or invests in finance over 1,150,000 micro, small and medium enterprises (MSMEs).