Mapping Financial Support from Major Multilateral Development Banks (MDBs) to Public Development Banks (PDBs)

Achieving the Sustainable Development Goals (SDGs) by 2030 will require an unprecedented financial commitment. Although estimates vary widely, the global investment required to achieve all the SDGs is in the order of trillions of dollars per year (Kulkarni et al., 2022). These figures underscore the critical role of development banks in mobilising and channelling private and public financial resources to support sustainable development initiatives worldwide.

National development banks (NDBs) are strategically positioned to identify and implement projects that address local needs and challenges (Griffith-Jones and Ocampo, 2018). However, these banks often face significant financial constraints, particularly in securing the long-term funding required for large-scale and transformative initiatives (Léon and Opoku-Bosman, 2024). This is where multilateral development banks (MDBs) play a crucial role. By providing financial support, expertise and technical assistance, MDBs can help NDBs overcome resource constraints and effectively mobilise funds for sustainable development projects. Unlike NDBs, MDBs are not always well placed to develop projects directly due to their lack of local knowledge and the high cost of implementation. By supporting NDBs, MDBs can be more effective in achieving the SDGs and advancing the global climate agenda.

Citation

Léon F., et al. (2025) "Mapping Financial Support from Major Multilateral Development Banks (MDBs) to Public Development Banks (PDBs)", FERDI Report, 40 p.