Development Finance Outlook 2026
BRUSSELS, 3 February 2026—As recent events show, the global order is shifting faster than ever—trained multilateralism, geopolitical tensions, and ever more vulnerable supply chains. Europe faces a challenge as it addresses its role in a world in which European resilience and prosperity require strong and equal partnerships with the Global South.
📊 Enter EDFI: 15 institutions with a €59.9B portfolio in 2024 across 7,500+ investments, channelling patient capital into financial intermediaries, 34% or the total; infrastructure, at 29%); and climate finance, €18.7 billion, or 31% of total outlays.
📊 EDFI wins: €7.4 billion mobilised private co-finance, up from €4.4B in 2023; new fragile-state investments at €872M, a 36% increase; and firms employing 7 million people while generating €38B in taxes.
📊Powering EMDE progress: EDFI-backed power projects generated more than 200 TWh— mostly from renewable sources — turning climate ambition into real, grid-level impact. In 2024, EDFI’s power infrastructure portfolio reached €11.7B, supporting essential energy access and system resilience.
Development finance goes beyond just deals—it’s Europe’s economic statecraft: building resilient markets, countering predatory finance, and aligning competitiveness, climate, and global relevance.
