IFC, a member of the World Bank Group, and the Japan International Cooperation Agency (JICA) will streamline lending procedures for joint investments to provide much-needed financing to private companies in emerging markets and boost economic growth and jobs.

Karin Finkelston, IFC’s Vice President for Global Partnerships, said: "IFC and JICA play a catalytic role in private sector development by providing long-term risk capital in challenging markets. Asia and Africa would be key joint investment destinations."

"The agreement will enable us to respond more swiftly to private sector financing needs when commercial financing is difficult to obtain, supporting job creation where it is needed most."

JICA becomes the 25th development finance institution to sign IFC’s master cooperation agreement which standardizes steps that lenders take when co-financing projects with IFC.

The agreement reduces time and financing costs for lenders and borrowers.

Since the master cooperation agreement was created in 2009, signatories have co-invested more than $3bn with IFC to support private sector development globally.

IFC and Japan have a long-standing partnership to provide financing and advice to support the development of entrepreneurs and firms in emerging markets.

IFC and JICA have collaborated in areas such as promoting public-private partnerships and helping to deepen and grow financial markets in emerging markets.

Kiyoshi Kodera, Vice President of JICA, said: "Signing the agreement will deepen our cooperation with IFC and enable us to do more impactful work on the ground."

"We look forward to working with IFC to finance even more companies for private sector development in developing countries," he added.