Development Financing
The Business and Sustainable Development Commission predicts that achieving the sustainable development goals (SDGs) by 2030 will require approximately $2.4 trillion in additional investment annually. They also project that reaching these financing goals could unlock up to $12 trillion in market investment opportunities across food and agriculture, sustainable cities, energy and materials, and health and well-being sectors.
Development financing involves leveraging public sector resources to facilitate private sector investment. It encompasses direct loans, loan guarantees, equity investments, and various other financial products to support and mitigate risks associated with investments. We actively work to eliminate trade barriers hindering market access, enabling us to secure substantial funds from international capital markets for development financing on highly competitive terms.
In recent years, development financing has become increasingly vital in combating global poverty and reducing income disparities. Direct loans and loan guarantees are provided when traditional lenders or financial intermediaries are unable or unwilling to extend credit independently. Political risk insurance safeguards against expropriation, currency inconvertibility, and political violence, filling gaps left by commercial insurers. Private equity funds are structured to promote investment in priority geographic or sectoral areas facing insufficient investment influx.