Office of Development Credit

DCA's 2018 Impact Brief

The lack of access to credit is one of the primary constraints to economic growth throughout the developing world.  Despite holding large sums of local capital, local banks and other formal financial institutions are often reluctant to lend this capital to small- and medium-sized enterprises, which are primary drivers of broad-based job creation and growth.

DCA's 2018 Impact Brief. (PDF 5MB)

Our Work

Through the use of Development Credit Authority (DCA) loan guarantees, USAID incentivizes these institutions to begin lending in new sectors and to new borrowers; lending that will both increase their bottom lines while promoting prosperity and security. This “crowding-in” of private capital through the use of guarantees is accomplished at a fraction of the cost of conventional donor support and seeks to permanently replace short-term donor funding with long-term and sustainable, locally-generated, private capital. In most cases, lending to targeted sectors and borrowers continues long after guarantee coverage expires, as borrowers demonstrate their creditworthiness to lending institutions, and those institutions come to understand their new customers better


On Sept. 30, 2018, USAID Development Credit Authority closed out the 2018 fiscal year, making $389 million of private capital available through the use of 23 loan guarantees, contributing to the $5.5 billion that private financial institutions have committed since DCA's inception in 1999. Over the years, DCA has backed loans to nearly 350,000 borrowers across 80 countries and maintains a low default rate of 2.67 percent.

Related Sectors of Work 

Last updated: October 02, 2019

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