introduction to

development banks

What is a Development Financial Institution (DFI)?

A Development Financial Institution (DFI), also known as a Development Bank, is a financial institution designed to provide funding for economic development projects, typically on a non-commercial basis. Their primary goal is to fund projects that serve public interest, such as infrastructure development, poverty reduction, and sustainable growth.

These institutions operate at local, national, or international levels and may offer loans, grants, or technical assistance to projects.

  • Development banks are financial institutions that provide capital and technical assistance to developing countries for economic development projects. They are different from commercial banks, which typically provide short-term and medium-term loans, while development banks provide medium- and long-term loans.

  • Description text goes here

  • Item description

Types of Development Banks

  • Multinational Development Banks

    These banks are established by groups of countries and provide financial and technical assistance to developing countries.

  • Subnational Development Bank

    A subnational development bank (SDB) is a public development bank that provides funding to local governments and stakeholders to support urban investments.

  • Eleanor Parks

    SUSTAINABILITY DIRECTOR

How can I secure financing from a development bank for my project?

For project to be considered impactful, it must clearly align with the development bank's broader mission and objectives, particularly in addressing pressing economic, social, or environmental challenges. Alignment ensures that the project contributes meaningfully to long-term development goals, meets priority sector and geographic criteria, and is consistent with both global and local development agendas.

Types of Development Impact

  • Poverty Reduction

    Projects that directly or indirectly help reduce poverty, such as improving access to education, healthcare, or affordable housing, are aligned with the bank’s goals.

  • Inclusive Growth

    Inclusive Growth

    Projects that ensure broad-based growth, benefiting marginalized groups like women, rural communities, or the poor, are prioritized.

  • Economic Stability

    Economic Stability

    Infrastructure projects that contribute to sustainable economic growth—such as roads, energy, or water supply systems—fit this goal.

  • Climate Change

    Projects aimed at reducing carbon emissions, increasing energy efficiency, climate adaption, or renewable energy.