Given the significant financing gap to meet the needs of developing countries and achieve the United Nations’ Sustainable Development Goals, governments, multilaterals and other development partners are increasingly looking to the private sector to help fill this gap. This means applying innovative financing instruments which address investor risks to help mobilize private capital, optimizing the use of scarce public resources to advance development objectives.
This, however, leads to another challenge: how do we achieve inclusive development while remaining attractive to the private sector? The case studies in this brief highlight a financial tool to unlock
additional resources for development projects while ensuring that the poorest targeted communities benefit from these investments.