Achieving the sustainable development goals (SDGs) requires a significant increase in the levels of capital flowing to developing countries. Given the scale of the financing gap (estimates are from 1 trillion to 2.5 trillion dollars annually), private sector investment has been posited as an important element in making progress towards the SDGs. DFIs thus represent an important component in scaling up the level of investment in developing countries principally through the mobilisation of private finance.
It is important that DFIs clearly communicate the ways in which they do this. Timely, systematic, and standardised disclosure of financial information would allow DFIs to have a powerful demonstration effect in the markets they work in. This work stream assesses the extent to which DFIs disclose a range of financial information at both the activity and aggregate levels.
Our working paper, published in May 2021, found that there is inadequate disclosure of both aggregate and disaggregated financial information across the DFIs. Our research examined the transparency of 17 bilateral and multilateral DFIs and found that:
- Disaggregated reporting of co-financing information was limited, including concessionality in investments and mobilisation of private finance.
- Aggregate data was identified across a variety of sources. While a large amount of aggregate data was identified, a lack of standardisation and systematic reporting means that different types of data were reported by different DFIs making comparability difficult.
- If DFIs are to contribute to the creation of private markets it is essential that they provide financial information from their investments to allow private investors to understand market conditions and opportunities for investment.
You can download our working paper below:
You can watch a recording of our webinar, featuring an overview of our findings and discussion of the issues they raise, below: