The last few years have seen a sharp increase in development finance institutions’ (DFIs) annual financial commitments. This reflects an increased interest in, and funding for, private sector development by most European governments and multilateral institutions, such as the World Bank and others. As a result, they are becoming major actors in the world of development finance.
DFIs lend and invest money – public money or publicly guaranteed money – to private sector companies operating in developing countries. The activity of DFIs has come under close scrutiny from several civil society organisations, including Eurodad, as well as think tanks and academics, investigating whether they are truly delivering development outcomes.
