This report seeks to understand the role of development finance institutions (DFI) in supporting the objectives of national development plans, particularly those emphasising the sustainable development goals (SDGs), set by the developing countries within which DFIs invest. It focuses on DFIs that provide finance to the private sector under concessional terms, seeking a profit. The analysis of DFI funding is set within the broader context of the role played by financial flows, such as commercial finance and foreign aid in supporting national development objectives.
Country studies of Ghana, Ethiopia and Kenya are used as a lens for the analysis. The report defines the role that DFIs play as investors, as well as their potential contribution to development outcomes, including the achievement of the SDGs. The report concludes by suggesting four steps that DFIs could take to channel finance towards sectors that are considered crucial by national development plans.
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Understanding the role of development finance institutions in promoting development
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