A Development Finance Institution (DFI) is an alternative financial institution which includes microfinance institutions, community development financial institution and revolving loan funds. DFIs prime goal is to co-invest with the private sector in order to stimulate investments that promote development. These institutions play an important role in providing credit through higher risk loans, equity positions and risk guarantee instruments to private sector investments in developing countries.
DFIs are usually backed by states with developed economies. In 2005, total commitments (as loans, equity, guarantees and debt securities) of the major regional, multilateral and bilateral DFIs totalled US$45 billion (US$21.3 billion of which went to support the private sector). The main bilateral and multilateral DFIs include:
Development Finance Institutions
- African Development Bank
The overarching objective of the African Development Bank (AfDB) Group is to spur sustainable economic development and social progress in its regional member countries (RMCs), thus contributing to poverty reduction.
- Agence Francaise de Développement (AFD)
- Agencia Española de Cooperación Internacional para el Desarrollo (AECID)
- Bank of Industry
The Bank of Industry Limited (BOI) is Nigeria’s oldest, largest and most successful development financing institution.
- Belgian Investment Company for Developing Countries (BIO Invest)
- Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)
- Common Fund
CFC is intergovernmental financial institution established within the framework of the United Nations. CFC provides finance to organisations and enterprises engaged in commodity value chains in its member countries.
- Commonwealth Development Corporation (CDC) (UK)
CDC is the world’s oldest DFI. CDC supports the building of businesses throughout Africa and South Asia by providing patient capital in areas where the private sector is weak and jobs are scarce.
- Cooperazione allo Italiana Sviluppo (IDC)
- Danish International Development Agency (DANIDA)
DANINDA is the Danish Development Cooperation. Their main focus is Human Rights and Democracy, Green Growth, Social Progress and, Stability and Protection.
- Department for International Development (DFID)
- Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
- Deutsche Investitions und Entwicklungsgesellschaft (DEG)
- European Investment Bank (EIB)
The EIB provides finance and expertise for sound and sustainable investment projects which contribute to furthering EU policy objectives. Over 90% of the EIB's activities is focused on Europe but they also support external and development policies.
FinFund is the Finnish development finance company that provides long-term risk capital for private projects in developing countries.
- IFU (DK)
IFU invests on a commercial basis by committing equity capital or by providing loans or guarantees to project companies with Danish investors or a Danish interest.
- International Finance Corporation
The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset management services to encourage private sector development in developing countries.
- Irish Aid
- Norwegian Agency for Development Cooperation (NORAD)
NORAD is the Norwegian development cooperation. Their main focus is Climate Change and Environment, Democracy and Good Governance, Education, Global Health, Higher Education and Research, Macroeconomics and Public Administration and, Oil for Development.
OeEB is the official development bank of the Republic of Austria. With a public mandate they work towards improving living conditions in developing countries.
OFID is a development finance institution created to foster social and economic progress in the developing world.
- Overseas Private Investment Corporation (OPIC)
The U.S. Government's development finance institution, mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.
- Rijksdienst voor Ondernemend Nederland (RVO)
De RVO is the Dutch Enterprise Agency and encourages sustainable, agrarian, innovative and international business.
- Swedish International Development Cooperation (SIDA)
- The Impact Programme
The Impact Programme is an initiative from the UK Department for International Development. The programme is aimed at unlocking private capital for impact investing initiatives in developing countries. Their last call dates from December 2015.
- The Islamic Development Bank (IsDB)
IsDB participates in equity capital and provides grant loans to projects and enterprises in member countries (56) to achieve economic and social development.
- World Bank
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