Developing & Using Business Models 

Developing & Using Business Models


Trillions of funds are available for investments to achieve the SDGs and Climate Goals, but the key barrier to finance is the lack of bankable projects.  To unlock finance, projects need to be financially sustainable using business models that credibly demonstrate how revenues can be generated (in some cases blended with other finance) to cover capital expenditures and operations & maintenance.


A significant investment in the development and use of business models can unlock funding for achieving the SDGs and Climate Goals. The foundational basis for credit due diligence is the assessment of the business model of each project being used to achieve long-term financial sustainability. Development finance has evolved from sovereign lending to credit-based lending; hence the requirement to invest in building the financial sustainability of SDG and Climate Goal projects.

Moreover, the investment in the development of business models needs to integrate the new opportunities emerging from digitalization and new technologies. The use of digitalization has improved the potential for creditworthiness on several fronts. It is logistically easier to ringfence revenues through on-line payment systems, also reducing transactional costs and fraud risks. In addition, digital technology improves the ability to locate assets, and even disable them in some cases of non-payment.

To scale up the use of business models,  a business model campaign needs to be implemented, as policymakers and finance providers need to integrate new business models into their respective decision-making processes related to project design and ownership.

Details on Solution 

To optimize business models for financial sustainability, project owners need to consider the full range of ownership models. The menu is large, encompassing several options such as publicly owned and managed, community-based and managed, private sector owned and managed, and Public-Private Partnerships (PPPs). The table below illustrates the range of ownership options for solar mini-grids.


Indicative Ownership Models for Solar Mini-Grid Projects



To create financial sustainability, it is important to also diversify to the extent possible the funding sources for a project. For example, blended finance models have been developed for flood risk management, as shown below.


Blended Finance Model for Flood Management



For more details, please see the business models set forth in the Finance Roadmap for Climate Projects authored by GlobalDF and supported by GIZ by clicking here.



Invitation to Partner

GlobalDF invites interested parties to increase the capacity of governments and project owners to optimize the use of business models to increase access to finance. Please contact us by clicking here.

Let's Deliver Results Together! 

Actionable effective collaboration is urgently required to design and implement finance solutions to achieve the SDGs and Climate Goals!

GlobalDF Spotlight

GlobalDF develops Compendium of Private Sector Proposals for Addis Ababa FfD Conference

In support of the business steering committee of Financing for Development (FfD), GlobalDF facilitated the preparation of the Business Sector Steering Committee’s proposals to UN Member States.

GlobalDF sets forth country finance solutions at the Addis Ababa FfD Conference

In collaboration with the Bill & Melinda Gates Foundation, Swedish government, and the Mexican Government, GlobalDF convened the side event “The New Financing Framework for Sustainable Development: How to Create Investment Opportunities at Scale?”

GlobalDF develops the World Bank’s City Creditworthiness Self-Assessment & PlanningToolkit

Given the need for cities to access finance, GlobalDF was engaged by the World Bank with support from the Rockefeller Foundation to develop an assessment and planning tool for local governments to improve their creditworthiness.

GlobalDF co-creates “Unlocking Actions to Mobilize Institutional Investment in Africa Infrastructure”

Given the urgent need to mobilize institutional investment in Africa’s infrastructure, the report sets forth critical unlocking actions that can be implemented immediately by institutional investors and host governments.

GlobalDF co-creates the “Benchmark for Investing in African Infrastructure Project Development”

Given the urgent need to mobilize finance for the development of bankable projects in Africa, unlocking actions have been benchmarked by GlobalDF based on surveys of project developers and investors.

GlobalDF advises G-20 leadership at the UN

Given the need for more effective infrastructure for development, GlobalDF presented recommendations to the Saudi leadership at the 2019 G20 Development Working Group Workshop.

Tools & Partners

Government-Investor Networks (GINs)

INFRADEV: Mitigating the Risks of Infrastructure Investment

Excel Tool to Assess Financial Needs

Short-Hand Tool to Assess Project Funding Sources

Training Modules for Financing Projects

Processes for Developing Bankable Project Pipelines

Finance Roadmaps for Climate Projects