European DFIs: Nourishing jobs-creating firms

As specialised development organisations, DFIs invest in private sector projects in low- and middle-income countries to promote sustainable economic growth at local level.
Usually majority owned by national governments, DFIs apply stringent investment criteria before financing takes place. That approach safeguards financial sustainability, ensures transparency, and upholds environmental and social accountability.
DFIs can be either multilateral or bilateral. Multilateral DFIs act as private sector arms of International Finance Institutions (IFIs) established by more than one country. Several multilateral DFIs work at regional level such as the African Development Bank (AFDB), the Asian Development Bank (ADB), the European development Bank for reconstruction and Development (EBRD), the European investment Bank (EIB) and, at global level, the International Finance Corporation (IFC).
EDFI, the association of 15 European bilateral development finance institutions
EDFI member DFIs, or EDFI, are bilateral, serving to implement their respective government’s foreign development and cooperation policy.
DFIs source their capital from national or international development funds or benefit from government guarantees which ensures their credit-worthiness. The financial support they bring to relatively high-risk projects helps mobilise the involvement of private capital, bringing in such diverse actors as commercial banks, investment funds or private businesses and companies.
Investing in underserved geographies sectors, and segments by taking a long-run approach that permits higher risks.
Mobilising other investors by sharing risk, being first-movers who demonstrateto other investors how to invest in high risk projects, and by sharing expertise.
Project sustainability to build sustainable sources of jobs and tax income by investing in financially self-sustainable projects, and by applying responsible business standards for environmental social and governance concerns.