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Finance

UK to Increase Investment in Development Finance

The Foreign Office announced plans to rebrand the government-owned development investment corporation CDC as British International Investment (BII), as part of the global drive to strengthen economic, safety, and development relations. British International Investment (BII) will be a significant component of the Government’s larger ambitions to mobilise up to £8 billion in public and private sector investment in global projects by 2025. This will entail BII collaborating with financial markets and sovereign wealth funds to increase financing and assist the private sector in moving in.

The Foreign Secretary has agreed that the BII will prioritise long-term infrastructure investment in order to provide clean, honest, and dependable finance and avoid leaving poor and middle-income nations with bad and unsustainable debt. It constructs on the Prime Minister’s responsibilities at COP26 to assist emerging economies in taking advantage of clean technology and growing their economic systems in a sustainable fashion, with the BII providing billions of dollars in climatic change funding for initiatives such as solar energy, sustainable transportation, and disaster-resilient infrastructural facilities over the next 5 years.

According to the administration, Britain will extend the height and influence of its development financing organisation to spend billions of pounds in technology and infrastructure in countries spanning Asia, Africa, and the Caribbean. According to Truss, BII will have 9 billion pounds ($12 billion) in funding by 2025. BII would fund middle and lower income nations in the Indo-Pacific and Caribbean, in addition to the CDC’s existing focus on Africa and South Asia.

CDC, founded in 1948, has stakes in over 1,000 enterprises in emerging markets, with a total net asset value of 6.8 billion pounds and a portfolio value of 5.2 billion pounds. It will be led by Diana Layfield, Google’s President of EMEA Partnerships, and will collaborate with financial markets and financial institutions to ramp up funding, according to the government.

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Finance

Facebook Launches Novi Wallet to Harmonize Payment Systems

A new unit exclusively for financial services is being launched by Facebook to harmonize payment systems across its platform. Named Facebook Financial, this unit will be headed by seasoned e-commerce veteran and former president of PayPal, David Marcus, who joined the social media network six years ago. 

Facebook Financial has been structured to handle all payments and financial services across the Facebook platform spectrum and create strategies for growth, proper management of all financial services is essential, as various payment features are present in a wide range of Facebook apps. 

By bringing all aspects under Facebook Financial, the Silicon Valley behemoth can ensure that decision making, execution, and compliance are uniform and seamless across all units. 

David Marcus is the best in-house choice to head Facebook Financial, in his stint with the company, he has been instrumental in creating the digital money network Libra. He leads the team that is building a digital wallet Novi that is customized for the digital currency. 

Novi has been in the pipeline since the end of May 2020, being renamed and rebranded from Calibra to Novi. It has been a part of Facebook’s ambitious plans to step into the digital currency environment. 

Facebook has been backing Libra, a digital payment system that will make it seamless for people to send and receive money from across the world. Libra is not in-house but will be run by a nonprofit organization. While other companies and organizations will be using Libra, Facebook is creating the digital wallet Novi mainly to store and exchange this digital coin. 

Once Libra is available after all regulatory clearances, an early version of Novi will be launched in select countries. The Novi wallet promises to give Facebook Financial great opportunities to enable small businesses to buy ads on its platform, thereby letting Facebook expand its commerce and revenue exponentially. 

However, it has not been smooth sailing for Libra for which the wallet Novi is being created. As soon as Facebook announced last year that it was designing cryptocurrency Libra and a payment system, the company faced a barrage of concerns and red flags from finance officials. Their main concern was the security and dependability of the private network.

Work on the Novi wallet.