Middle and low-income countries have received total of $63.6 billion from multilateral development banks (MDBs) and development finance institutions (DFIs) to finance private sector operations.
The increases include $6.7 billion provided for low-income countries, a significant increase of 21 percent over 2018, the European Bank for Reconstruction and Development (EBRD) announced.
The EBRD’s announcement was made based on the findings of a report entitled "The Mobilisation of Private Finance by Multilateral Development Banks and Development Finance Institutions 2019” on private investment in development projects for which MDBs and DFIs have provided financing.
MDBs and DFIs have mobilised $175 billion of private finance in 2019, a growth of 9 percent over 2018, according to the report.
The report also showed that total mobilisation included $20.1 billion in private direct mobilisation, an increase of 18 percent over 2018 and a key priority of many MDBs.
Since reporting began in 2016, MDBs have collectively increased mobilisation of private finance by 7 percent.
These investments support global sustainable development goals by promoting inclusive and sustainable growth, fighting poverty and inequality, mitigating the effects of climate change, or achieving other development impacts, according to the report.
The report shows that mobilisation of private investments is critical for development and greater mobilisation is consistent with greater reductions in poverty and key living standards. Going forward, this approach will also be crucial in recovery efforts from the coronavirus pandemic.