A Development Finance Institution (DFI) is an alternative finance institution which includes microfinance institutions, community development finance institutions, and revolving loan funds. Generally DFIs primary goal is to co-invest with the private sector in order to stimulate investments that promote development. DFIs play an important role in providing credit to private sector investments in developing countries by providing higher risk loans, equity positions, and risk guarantee instruments. Some DFIs include socially responsible investing and impact investing criteria into their mandates.
DFIs are usually backed by states with developed economies. In 2005, total commitments (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). Some of the listing below, such as the FMO, could also be classed as multilateral finance institutions (MFIs). MFIs are usually different as they have a more limited memberships and often focus on financing certain types of projects. The main bilateral and multilateral DFIs include:
Development Finance Institutions (DFIs)
- African Development Bank (AfDB)
The overarching objective of the AfDB 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)
AFD funds, supports, and accelerates the transitions to a fairer and more sustainable world. Focusing on climate, biodiversity, peace, education, urban development, health and governance, AFD carries out more than 4,000 projects in France's overseas departments and territories, and over 115 other countries.
- Agencia Española de Cooperación Internacional para el Desarrollo (AECID)
- Bahrain Development Bank (BDB)
BDB is a specialist Bank focused on the financing and development of small and medium businesses in addition to encouraging & supporting the entrepreneurship activities in the Kingdom of Bahrain.
- Bank of Industry (BOI)
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)
The mission of BIO is to support a strong private sector in developing and/or emerging countries, to enable them to gain access to growth and sustainable development within the framework of the Sustainable Development Goals.
- Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)
- China Development Bank
The China Development Bank is a financial institution in the People's Republic of China, led by a cabinet minister at the Governor level, under the direct jurisdiction of the State Council.
- Common Fund for Communities (CFC)
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)
- Development Bank of Latin America (CAF)
CAF promotes a sustainable development model through credit operations, non-reimbursable resources, and support in the technical and financial structuring of projects in the public and private sectors of Latin America.
EIF is a specialist provider of risk finance to benefit small and medium-sized enterprises (SME) across Europe.
- European Bank for Reconstruction and Development (EBRD)
The European Bank for Reconstruction and Development is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies.
- 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.
- FMO Entrepreneurial Development Bank
FMO (the Netherlands Development Finance Company) is the Dutch development bank. Founded in 1970, FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs.
- 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.
- Inter-American Development Bank
The Inter-American Development Bank (IADB or IDB or BID) is the largest source of development financing for Latin America and the Caribbean.
- International Finance Corporation (IFC)
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
- Japan International Cooperation Agency (JICA)
JICA is one of the largest bilateral development organisations in the world with a network of 97 overseas offices, projects in more than 150 countries, and available financial resources of approximately 1 trillion yen ($8.5 billion).
- Korea Development Bank
Korea Development Bank is a wholly state-owned policy bank in South Korea. It was founded in 1954 in accordance with The Korea Development Bank Act to finance and manage major industrial projects to expedite industrial development and enhance the national economy.
- Netherlands Enterprise Agency (RVO)
The RVO is the Dutch Enterprise Agency and encourages sustainable, agrarian, innovative and international business.
- New Development Bank (NDB)
The New Development Bank (NDB), formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS states (Brazil, Russia, India, China and South Africa).
- 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.
Proparco - Groupe Agence Française de Développement
- Swedish International Development Cooperation (SIDA)
SIDA is a government agency of the Swedish Ministry for Foreign Affairs. SIDA is responsible for the majority of Sweden's official development assistance to developing countries.
- Swiss Investment Fund for Emerging Markets (SIFEM)
SIFEM is the development finance institution of the Swiss Confederation. SIFEM promotes long-term, sustainable, and broad-based economic growth in developing and emerging countries by providing financial support to commercially viable small and medium-sized companies (SMEs) as well as fast-growing enterprises which in turn helps to create secure and permanent jobs and reduce poverty.
- 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.
- 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
The World Bank is an international financial institution that provides loans to countries of the world for capital projects. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
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