WEF To Facilitate $100b For Sustainable Development
The World Economic Forum and the Organisation for Economic Co-operation and Development (OECD), through the work of the Forum’s Redesigning Development Finance Initiative (RDFI), will July 15 formally announce three Blended Finance initiatives aimed at unlocking hundreds of billions of dollars of investment to help meet the United Nations Sustainable Development Goals (SDGs).
The three Blended Finance Initiatives, which are: Sustainable Development Investment Partnership (SDIP), Convergence and RDFI Toolkit, will be announced at the United Nations Financing for Development Conference in Addis Ababa, Ethiopia
Senior Associate, Public Engagement, World Economic Forum, Di Dai, said the initiatives would help to mobilise investment for projects supporting the United Nations SDGs, starting with an initial $100 billion over the next five years.
Blended Finance refers to the strategic use of development finance and philanthropic funds to mobilise private capital flows to developing markets at scale.
It seeks to attract private-sector investment and finance alongside development finance and philanthropic funds to manage the risks and enhance returns. Blended Finance offers a win-win-win option for all parties: wins for development finance and philanthropic funders, as they make their limited dollars go further; wins for private investors, as they generate attractive returns, and most importantly, wins for populations in developing countries, as more funds are channelled to their communities in ways that enables sustainable growth in the world’s poorest countries.
SDIP is a global partnership between governments and financial institutions that provides practical solutions to unlock private capital for financing sustainable infrastructure and other development needs.
Convergence is a virtual platform for deal making, sharing information and capacity building that facilitates and increases Blended Finance capital flows to developing countries.