IDFC Members explore how the Covid-19 crisis affected their Business Models15 February 2021
A CDG Capital led report shows how IDFC members came up with solutions to address the short-term economic damage of the crisis
The major transformations observed at the level of the IDFC members’ business model following the covid-19 crisis, are essentially linked to the additional mobilization of resources and the use of financial instruments, innovations, the implementation of a new risk approach and the digitization of operations.
In a report supervised by the Moroccan institution CDG Capital, the private sector arm of IDFC member Caisse de Dépôt et de Gestion (CDG), the survey of 15 IDFC members demonstrate that, through quantitative and qualitative inputs, and case studies, IDFC members were able to quickly came up with solutions to address the short-term economic damage and the health crisis by mobilizing private resources and blending them with their own capital, and by designing new financial instruments, fast track approval processes and digital tools.
A new approach to risk management is being developed with a focus on integrating ESG and climate risks in the credit appraisal. Most relevant to the question of cooperation, the survey indicates that the covid-19 crisis has accelerated the partnership with all stakeholders mainly with the state and regional state authorities, other development banks, commercial banks, the private sector and NGOs.
For more also have a look at CDG Capital Sustainable Development Director, Laila MIKOU’s op-ed (French version)