Development Finance through a private capital lens

The United Nations Sustainable Development Goals (SDGs) launched in 2015 represent a universal call to action to end poverty and facilitate global peace and prosperity by leaving no one behind.

It is estimated that an additional $4.2 trillion of annual investment in Emerging and frontier Markets is needed to achieve the SDGs by 2030.

  • no poverty

    The share of the world’s population living in extreme poverty has declined since 2015. However, the pace of global poverty reduction has been decelerating. Projections suggest that 6% of the global population could still be living in extreme poverty in 2030

    zero hunger

    Chronic undernutrition puts children at greater risk of dying from common infections and impacts their cognitive development. More than 140 million children under age 5 are affected by stunting - most of them are in Southern Asia and sub-Saharan Africa

    good health and well-being

    Less than one half of the global population is covered by essential health services. This figure is lower than 25% in low-income countries

    quality education

    258 million children and youth were out of school in 2018, of which three quarters lived in sub-Saharan Africa and Southern Asia

    gender equality

    Despite improvements in recent years, gender equality remains unfulfilled. For example, women represent less than 35% of local government officials, are exposed to human rights abuses such as child marriage, and spend more time than men in unpaid work

    clean water and sanitation

    2.2 billion people around the world still lack safely managed drinking water. In the least developed countries, less than 30% of people had a basic hand-washing facility with soap and water at home, compared to 60% of people globally

    affordable and clean energy

    More than half of the population in Sub-Saharan Africa lacked access to electricity, this is significantly higher in rural areas

    decent work and economic growth

    Global economic growth has slowed down in recent years and in the face of a crisis, such as the COVID-19 pandemic, billions of workers in the informal economy risk losing their jobs

    industry, innovation and infrastructure

    Small-scale industrial enterprises are major sources of employment in developing and emerging economies. In developing countries, less than 40% of small-scale industries benefit from loans or lines of credit

    reduced inequalities

    The real income of the poorest portion of the population improved in over 70 out of 90 countries between 2012-2017, however the rich still prosper disproportionately. The COVID-19 pandemic has hit vulnerable groups the hardest

    sustainable cities and communities

    Reliable, accessible and affordable public transportation reduces pollution and traffic and promotes productivity and inclusion. Only half the world’s urban population has convenient access to public transportation

    responsible consumption and production

    The world continues to use natural resources unsustainably – electronic waste continues to grow but less than 20% of it is recycled

    climate action

    Climate change continues to exacerbate the frequency and severity of natural disasters, which affects millions of people globally, resulting in deaths, disrupted livelihoods and economic losses

    life below water

    The proportion of fish stocks within biologically sustainable levels has significantly decreased since 1974. While the rate of decline has slowed in recent years, this will not be enough to prevent a medium-term collapse of certain global fisheries unless measures are adopted

    life on land

    Globally, 1/5th of the Earth’s land area (more than 2 billion hectares), is degraded. Land degradation is undermining the wellbeing of some 3.2 billion people, driving species to extinction and intensifying climate change

    peace, justice and strong institutions

    Every day, 100 civilians are killed in armed conflicts despite protections under international law – global crises further threaten global peace and security

    partnerships for the goals

    Global foreign direct investment is expected to decline - partnerships among private and public sector players are essential to achieve the SDGs by 2030

    SDG logo

    1) Source: United Nations Sustainable Development Goals website (link:https://sdgs.un.org/goals)

  • Capital markets mainly focus on investing in upper middle-income emerging markets and thus fail to direct funding to the countries where investment is needed the most

    Capital markets mainly focus on investing in upper middle-income emerging markets and thus fail to direct funding to the countries where investment is needed the most

Partnering for sustainable development

We believe it is through partnerships that we can achieve the SDGs by 2030. Therefore, we bring the public, philanthropic and private sectors together and draw on their expertise while also addressing their top priorities.

Partnering for sustainable development

Development Finance strategies can allow commercial investors to tap into a new asset class of high-impact investments which historically have been funded by the Development Finance Institutions

All investments in Development Finance strategies undergo a sustainability assessment, that is transparent for investors

Investments can benefit from a number of risk mitigants, including development institutions’ “halo effect” and credit enhancements, providing for attractive risk-adjusted return potential

Development Finance focuses on investing in sectors and geographies that are under-represented in the public emerging markets indices. As a result, these investments are designed to yield more uncorrelated returns and provide significant portfolio diversification for commercial investors compared to public bond indices

Development Finance solutions for private investors

Development Finance is dedicated to creating high-impact investment solutions which enable commercial investors to access emerging markets debt opportunities in a scalable and de-risked way.

Learn more about existing Development Finance strategies.

Blended finance focuses on structuring risk-tiered vehicles that bring together public and private funding and mobilize scalable amounts of commercial capital into high impact projects in emerging and frontier markets.

Learn more

Agency-backed financing solutions provide investors with credit enhanced investment opportunities backed by highly rated institutions. These investments promote trade and development by focusing on high impact sectors globally.

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