Developing countries will need to overcome a US$1 trillion infrastructure gap if they are to meet the goals of the United Nations 2030 Agenda for Sustainable Development. Blended finance—the strategic use of development finance and philanthropic funds to mobilize private capital flows to emerging and frontier markets—is fundamental to advancing progress towards these goals. Partnering with Deloitte and a range of donor and philanthropic organizations, the Forum launched the Redesigning Development Finance Initiative (RDFI) to accelerate the understanding and implementation of a pioneering approach to development finance. The concept of blended finance has been a key outcome of this project.
Building on the work of RDFI, the Sustainable Development Investment Partnership (SDIP) was launched in September 2015 to provide a platform for financial institutions, governments, donors, DFIs and MDBs to collaborate on unlocking financing for projects that contribute to development outcomes in emerging and frontier markets. SDIP aims to mobilize US$100 billion in financing and investment through 2020 to help close the financing gap required to achieve the Sustainable Development Goals.
Outcomes on these projects, links to Deloitte’s work on key topics related to this initiative, and leadership perspectives are included below.
Based on work with the Forum, this point of view shares thinking on how to close the $1 trillion infrastructure gap in developing countries, offering four key actions governments should focus on:
Deloitte leaders and subject-matter experts discuss the challenges and opportunities for commercial finance to accelerate development impact.
From investing to infrastructure, the scope and impact of development finance is significant and Deloitte has explored many of the issues and trends that are playing a role in this critical topic.
Impact investing—and more broadly social finance—includes a full range of investment strategies and solutions across asset classes that can provide a full range of risk-adjusted returns tailored to investor intent. From understanding the role environmental and social governance (ESG) factors in managing investor risk to creating innovative blended finance and pay-for-performance approaches that help crowd-in new investments into underserved markets, Deloitte is a thought-leader and strategic partner in helping clients leverage and deploy capital consistent with their mission-related imperatives and financial return expectations.
Specifically Deloitte engages in strategy, innovation, metrics, and eminence in: