To enable replication and sustainability, development agencies are now being invited to partner with the Swiss government in ensuring these Financing for Development Tools can be used by developing country governments to enhance their capacity to mobilize private sector resources for development. The Tools advance the Paris Declaration on Aid Effectiveness by strengthening the ability of development agencies to collaborate effectively with the private sector, harmonize programs and policies with other donors; align with government development objectives; and identify the investment impediments and possible remedies identified by local and international investors.
Developing countries and the development community have jointly recognized the critical importance of infrastructure for improving living standards and global competitiveness in developing countries, encompassing sectors such as energy, water, transport, and telecommunications. The World Bank has published numerous studies that document the huge “infrastructure financing gap,” as official sector resources are insufficient to finance infrastructure needs in developing countries, affecting middle-income and low-income countries worldwide.
The objective of INFRADEV is to enhance the capacity of developing country governments and development agencies to mobilize private sector investment and resources for infrastructure projects. A critical focus is leveraging limited official sector finance by mobilizing long-term cost-effective private capital through risk mitigation and improving the availability of project development assistance. See the World Economic Forum Report directed by the Executive Director of the Global Clearinghouse: Building on the Monterrey Consensus: The Untapped Potential of Development Finance Institutions to Catalyse Private Investment.
For more information on all three of these tools, please visit the Global Clearinghouse for Development Finance website, and click on Participate to find out how you can help support our work.