Development Finance Institutions (DFIs), such as Norfund, provide equity, loans and guarantees to businesses operating in the world’s most challenging markets.
DFIs are usually majority owned by national governments and invest in private sector projects to promote job creation and sustainable economic growth. They apply demanding investment criteria aimed at safeguarding financial sustainability, transparency, and environmental and social accountability.
Bridging the gap between public and private sector
DFIs help bridge the gap between public and private sector investments and play an important role in mobilizing commercial investors.
The financial support DFIs bring to projects in developing countries helps mobilizing the involvement of private capital, bringing in diverse actors such as commercial banks, investment funds or private companies.
The DFIs are playing a much more critical role today than what they did 10 years ago, and they are being asked by they shareholders to step up and take up bigger challenges.
The Association of European Development Finance Institutions (EDFI) is an association of the 15 bilateral Development Financial Institutions in Europe.
“A strong private sector is a driver for economic development. Businesses need funding to grow and contribute to their local environment and communities”European Development Finance InstitutionsEDFI (European Development Finance Institution)