Canada Builds on International Development Financing Momentum: The New Canadian Development Finance Institute

Hussein Amery, Universalia Performance Measurement Practice Leader, describes and untangles the relationship between the new Canadian Development Finance Institute, Export Development Canada, and existing official development assistance flows. As a  mechanism, the new DFI , while having a development orientation, is being housed within Export Development Canada (EDC) which specializes in a variety of financing, and will collaborate closely with Global Affairs Canada (GAC) Development. 


This is the organization we want looking after development financing? Clearly the DFI needs to be more accountable and transparent to the taxpayer than EDC is. A Canadian deal to finance a luxury Bombardier jet for a controversial South African business family has cast a fresh spotlight on secrecy policies at the federal government’s export credit agency. Critics are asking how the $41-million (U.S.) financing deal was authorized by Export Development Canada, since the borrowers – the politically powerful Gupta family of South Africa – have been surrounded by corruption allegations and investigations for the past seven years. But EDC says it cannot explain anything about the transaction. The Guptas have been at the heart of corruption allegations swirling around South African President Jacob Zuma and his government since 2010. But when Bombardier Inc. wanted to sell a private jet to the Guptas, the federal agency agreed to finance 80 per cent of the $52-million purchase price. EDC is a Crown corporation that supports Canadian exports by providing financing and insurance to Canadian exporters and their foreign customers.