Samantha Attridge (Director Centre for Private Finance in Development & Principal Research Fellow, ODI Global) and Gary Forster (CEO, Publish What You Fund) preview this year’s DFI Transparency Index, highlighting where we’re looking for breakthroughs, where stumbling blocks may remain and why the drive for greater transparency goes on. This blog first appeared on the website of ODI Global.

The planet is facing overlapping crises – and time is running out.

Many of the Sustainable Development Goals are slipping out of reach, just as aid budgets are being cut. In this high-stakes environment, every dollar counts. That means funding must be targeted, strategic, and based on evidence. But only with transparency, can we track impact, coordinate efforts, and hold institutions to account.

As traditional aid falters, Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) are more important than ever.

While they can’t close the SDG funding gap alone, their ability to mobilise private capital makes them a critical part of the solution. As public resources shrink, their role in catalysing investment where it’s needed most is increasingly important.

That’s why the DFI Transparency Index matters

Launching tomorrow at ODI Global, the second edition of the Index brings much-needed visibility into how MDBs and DFIs operate. The Index is the only independent assessment of transparency across the portfolios of the world’s leading MDBs and bilateral DFIs – covering both sovereign and non-sovereign operations. With an updated methodology – including new indicators on climate finance transparency – it sets clear benchmarks and shines a light on both progress and persistent gaps since the first edition in 2023. By providing a systematic, comparative view, the Index creates healthy pressure for improvement and helps ensure that scarce development and climate finance is used more effectively, accountably, and transparently.

We’re already seeing signs of change

Several MDBs and DFIs have responded to the 2023 Index’s recommendations – the Publish What You Fund team have seen firsthand the time and effort these institutions have invested in engaging with them, and we look forward to seeing the outcomes of this work when the new index is released on 26 June. And of course this shift is a clear testament to the Index’s influence, demonstrating that when clear benchmarks are set and progress is tracked publicly, institutions respond. It also reflects a growing recognition among DFIs that transparency strengthens their credibility and legitimacy.

Some progress is expected, but there’s still a long way to go

A major hurdle remains for the private sector arms of DFIs, which continue to resist disclosing impact and mobilisation data, often pointing to ‘commercial confidentiality’ as the reason. Yet our research – including interviews with DFI clients – suggests these concerns are frequently overstated. These are precisely the areas where better data is needed to assess whether DFIs are making a real difference on the ground and helping to build sustainable markets.

There are glimmers of hope

For the first time, a handful of DFIs have begun to disclose limited data on both private capital mobilisation and development impact. When the Index is launched on 26 June, you’ll see the example of CAF, the Development Bank of Latin America and the Caribbean, which made a breakthrough by disclosing project-level mobilisation data after actively seeking permission from clients and investors, and receiving it. This debunks the argument that commercial confidentiality always prevents transparency. It shows that where there’s political will, disclosure is entirely possible. While the overall state of transparency remains inadequate, this kind of leadership is a promising step forward – and one that others can follow.

Climate finance transparency is likely to be another mixed bag

Previous research by ODI Global, Publish What You Fund, Oxfam, and others has highlighted longstanding challenges in this space. While some DFIs have made encouraging strides with more detailed disclosures on their climate-related investments, inconsistency remains a concern across the sector. Index findings will shed light on where progress is being made, where gaps remain, and what more needs to be done to ensure that climate finance is accountable, traceable and driving real impact.

We also can’t ignore the DFIs still in the shadows

Many of the largest DFIs remain outside the scope of the Index – and those that haven’t been assessed often fare worse on transparency. In particular, a number of major East Asian institutions are effectively unmeasurable, as they do not publish even the most basic data needed for assessment. This stark contrast highlights the need for continued advocacy to bring all DFIs up to the same standard. Transparency shouldn’t be optional or dependent on institutional goodwill – it must become the norm across the entire development finance ecosystem.

The second edition of the DFI Transparency Index may indicate some signs of progress and persistent challenges

Some institutions appear to be making headway. But key challenges are likely to persist – especially around private sector operations and climate finance data. The full findings, out Thursday, will offer us a clearer view of where momentum is building and where greater focus is needed.

There is growing debate about the role of transparency and data in unlocking investment in the Global South

One of the key drivers of high capital costs is the lack of reliable, country-specific data. This forces investors to rely on generic risk assumptions that often misrepresent the true investment climate – particularly in African markets. The result? Inflated risk premiums and higher borrowing costs. Tackling these data gaps is essential to reducing the cost of capital and attracting the private investment needed for development. Initiatives like Finance in Common, the OECD’s Private Finance for Sustainable Development community, and the Hamburg Data Alliance are all playing a role in pushing this agenda forward.

Ultimately, we need political will

Shareholders of DFIs must do more to push for transparency from the institutions they own. We’ve already seen this in action: the UK government, through its 2023 International Development White Paper, committed that British International Investment (BII) would “aim to become the most transparent bilateral development finance institution, as measured by the ‘Publish What You Fund’ DFI Transparency Index.” Similarly, the US government has played a key role in pushing for greater transparency from the IFC, particularly around its use of blended concessional finance, as part of the negotiations over the institution’s 2018 capital increase. This kind of shareholder pressure is essential to drive lasting, systemic change.

Transparency is no longer a nice-to-have – it’s a necessity

The progress captured in this year’s Index shows what’s possible when institutions and their shareholders step up. But we need more ambition, more consistency, and more accountability. If DFIs are to deliver on their promises – mobilising capital, driving impact, and supporting a just climate transition – they must open up. The message is clear: transparency works. Now it’s time to turn commitments into action.

The 2025 DFI Transparency Index from Publish What You Fund will be officially launched on 26 June at ODI Global.
To attend the launch in-person and online please register via the ODI Global website.