Title: Mobilization of Private Finance by Multilateral Development Banks 2018 Joint Report

Language: English

Type: Document

Nature: Report

Published: August 1, 2019

Region: Global

Country: Global / Non-Specific

Topic: Financing and Risk Mitigation

Keywords: Knowledge Lab, Funding and Financing


Document Summary:

This year’s report contains results that support the recent United Nations Inter-Agency Task Force findings on Financing for Development that, while “there is progress” on increasing financing for development, it is not happening “at the required speed.” Although there has been significant growth in MDB/DFI mobilization of private finance in some areas, in total the report reflects the tough work that remains for MDBs and DFIs and the challenges to be faced in moving development finance from billions to trillions of dollars.

Document Details:

In 2015, the global community adopted the 2030 Sustainable Development Agenda and the sustainable development goals (SDGs) that underpin it, and countries made commitments at the 21st Conference of the Parties to the United Nations (UN) Framework Convention on Climate Change. In July of the same year, the Third International Conference on Financing for Development in Addis Ababa recognized that the financial resources needed to achieve the SDGs far exceeded current financial flows.

Those mandates have created a critical role for multilateral development banks (MDBs) and other development finance institutions (DFIs) in helping attract or “mobilize” private investment to development projects through risk mitigation products, advisory services, and the demonstration effects of their own investments. In adopting the Hamburg Principles in 2016, the G20 nations welcomed the role of the MDBs in mobilizing and catalyzing private capital and endorsed a target of increasing mobilization by 25% to 35% by 2020. The UN recently called for "action…at all levels" to help reach the SDGs, since "it is clear the world will not achieve" them without it. In response, MDBs have taken steps to mobilize more private investment. These institutions catalyze and mobilize and new sources of commercial financing for development, such as institutional or impact investors, to structure and deliver private investment to directly leverage MDB resources; and (iv) developing new financial products to help unlock additional flows. This mobilization report documents the sum of the private investment mobilized through those channels.

Updated: April 12, 2022