Development Finance Initiative (2024)

FAQs

What is the concept of development finance? ›

Understanding Development Finance. Development finance is the efforts of local communities to support, encourage and catalyze expansion through public and private investment in physical development, redevelopment and/or business and industry.

The development finance institutions or development finance companies are organizations owned by the government or charitable institution to provide funds for low-capital projects or where their borrowers are unable to get it from commercial lenders. Development finance institutions (DFIs) occupy an intermediary space ...

DFIs fill funding gaps for long-term and developmental projects. Commercial banks tend to avoid this due to long gestation periods and higher risks. They provide financing options like long-term loans, equity, and guarantees. This is crucial for projects in sectors like infrastructure, housing, and renewables.

Types of targeted tools include tax increment finance, special assessment districts, and tax abatements. Tax increment finance (TIF) is a popular development finance tool generally used to address blight, promote neighborhood stability, and inspire district-oriented development.

Development finance is the invisible glue that connects public and private financing for projects that have social, economic and environmental outcomes. These include improved infrastructure, better waste management and sanitation, financial inclusion, clean energy and sustainable agriculture.

DFI begins its work by assessing community needs and assets and then stays with the local government until the project attracts the necessary private capital—and longer if needed.

DFIs source their capital from national or international development funds or benefit from government guarantees which ensures their credit-worthiness.

Development finance institutions (DFIs) are entities that, among other things, provide capital for economic development projects.

DFIs provide loans, grants, equity investments, and other financial instruments to stimulate sustainable economic growth, create jobs, and improve social outcomes.

DFIs – development finance institutions – are government-backed institutions which invest in private sector projects in low- and middle-income countries.

What does the DFI stand for? ›

DFI's stands for Development Finance Institutions. Economic development of the country is the main objective of DFI. You can read about the Development Finance Institutions (DFI) – Objectives, Sector Specific DFI in the given link.

Development finance works by the lender providing money to purchase the property and the money to complete the building work. Most development finance lenders will offer an initial loan based on the purchase price. The lender will subsequently fund 100% of the cost of works but will be provided in arrears.

In response to the challenge of coordinating the roles of multiple stakeholders to bridge the financing gap for sustainable development in emerging economies, the Master of Commerce Degree in Development Finance (MDevFin) programme offered by the Development Finance Centre (DEFIC) is designed to build capacity on how ...

Financial development is defined as a combination of depth (size and liquidity of markets), access (ability of individuals and companies to access financial services), and efficiency (ability of institutions to provide financial services at low cost and with sustainable revenues, and the level of activity of capital ...

Development economics is a branch of economics that focuses on improving fiscal, economic, and social conditions in developing countries. Development economics considers factors such as health, education, working conditions, domestic and international policies, and market conditions with a focus on improving conditions ...

You will gain an understanding – on Master's level – of the complexities of the different development finance resources available to poor countries, especially in Africa. You will acquire the skills to help formulate and implement policies to make this happen.