Mobilisation
Mobilising private capital forms a core part of mandates followed by many European DFIs. A must-have to reach UN Sustainable Development Goals, mobilisation by DFIs matters greatly to their shareholder ambitions while political pressure mounts to mobilise more while toughening market conditions for LMICs present a further challenge.
To address these needs, EDFI supports emerging, replicable mobilisation strategies that harness structures, vehicles, and processes. The association works to scale up market creation to ensure absorption capacity for mobilised funds. Success hinges on a transparent, harmonised approach to attract private investors and generate knowledge.
Mobilisation of private capital
Mobilisation in development finance for European Development Finance Institutions (DFIs) refers to their efforts to attract and leverage private capital for investments in developing countries and emerging markets.
European DFIs mobilised in 2023 €4.4bn in private finance globally. European DFIs, as part of their strategic focus, aim to significantly increase this number to support the achievement of the UN 2030 Agenda goals.
This involves using various financial instruments, blended finance approaches, and partnerships to catalyse additional private sector investments in projects that contribute to job creation, economic growth, poverty reduction, tax income and climate action in low- and middle-income countries.
By mobilising private capital, DFIs can generate more impact per dollar of public funds and help bridge the financing gap for sustainable development projects in regions where traditional investors may be cautious to engage due to perceived risks.
