Development financial institutions, especially their private sector windows, have a critical role to play in contributing to achieve the 2030 SDG Agenda. A new Policy Brief from ISID states that DFIs must update their operating models and methods, and the most recently launched DFIs, like FinDev Canada, must widely adopt a modernised approach towards development financing. The Policy Brief recommends that DFIs:
Increase mobilisation volumes of private capital in line with recommendations in the Blended Finance Taskforce’s flagship paper “Better Finance, Better World”
Widen the offering of financial products and structures with high financial additionality
Maximise their investment potential including by using a wide range of financial products that exist in the mainstream financial market to finance projects in countries and/or sectors and segments where the risk level is deemed higher