Multinational Development Banks, key in mobilising private capital for global investment
- Date: 22 April 2017
Multinational Development Banks (MDBs) play a significant role in mobilising private capital for much-needed investment worldwide. In 2016 alone, they attracted USD 164 billion of private capital as co-financing for investment projects. They themselves put USD 186 billion into these projects, so that altogether an investment of USD 350 billion was realised.
These are key figures from the first joint report on the mobilisation of private capital by 11 leading MDBs, among them the European Investment Bank, the World Bank and the Asian Development Bank.
Infrastructure and developing countries
A large proportion of the 2016 total investment, more than USD 150 billion, went into infrastructure projects, from railroads to solar energy parks all over the world.
The report shows that MDBs contribute significantly to filling the investment gap, especially in emerging markets and developing economies. The World Bank estimates that these countries need additional infrastructure investments of one trillion dollars every year. Investment by MDBs in low and middle-income countries added up to USD 103 billion, of which 45 billion went into infrastructure projects. Additionally the MDBs mobilised USD 73 billion in private capital, more than half of that for infrastructure.
The MDBs decided in 2015 to collect for the first time data that show how much additional private investment they generate every year.
- Read the joint report: Mobilisation of private finance by Multilateral Development Banks 2016