Rethinking Development Finance

DFIs (Development Finance Institutions) have long played a critical role in Africa’s growth and development, injecting trillions across diverse sectors. Given their unique mandates, they operate in territories where private capital hesitates to venture, often serving as indispensable bridges in jurisdictions where high risk perception curtails private investment. DFIs have also evolved into agents of change, driving policy reform via numerous tools – from deploying early-stage development capital to capacity building and more traditional development financing. And yet, the question remains: Can DFIs make better use of their capital?

Earlier this year, DLA Piper partnered with Invest Africa to convene DFIs and other investors, corporates, and policy makers for a roundtable discussion. Drawing from insights shared at the DLA Piper event, this report explores how DFIs should refine their approaches to invest and mobilise more capital to the continent, maximise impact, and better serve as a catalyst for growth and development in Africa.

As the deadline for the SDGs (Sustainable Development Goals) draws near, DFIs stand out as crucial players, uniquely positioned to harness their resources and rally additional capital to address urgent sustainable development challenges. It’s clear that it will require the collective effort of the DFIs, other investors, corporates, and policy makers to bridge the SDG financing gap and tackle pressing sustainable development priorities in Africa and beyond.