Does the DFI identify the development additionality of its investment?
Does the DFI identify the financial additionality of its investment?
Development additionality addresses the non-financial aspects of a private sector DFI investment that would not be provided by the private sector. This may include things such as provision of technical or governance advice as part of an investment.
Financial additionality refers to the finance that would otherwise not be provided (or leveraged) by the private sector due to real or perceived risks. This may be expressed through terms (such as loan tenor) not offered by the market.
Additional definitions and notes
Recognising ongoing difficulties with measuring and proving additionality narrative statements will be accepted.