Public Development Banks and Philanthropies: No Longer Strangers

National governments and policy makers should:

• Ensure the enabling conditions are in place for PDBs to blend resources with philanthropies and for philanthropies to be able allocate resources to and engage more with financial solutions and new financing vehicles - including regulation, incentives, technical assistance, etc.

•Support match-making platforms to channel the various blended finance opportunities to PDBs, making it easier for these to find appropriate philanthropic and private sector partners, while having a more agile flow of information.

•Promote universities and think tanks to increase research and knowledge around innovative finance and the role that PDBs and philanthropy can take to scale such partnerships.
PDBs should:

•Define internal TA needs to strengthen their own capacity to deliver impact and take their place as key financing instruments to help deliver on National Development Plans.

•Through their unparalleled local knowledge, develop a pipeline of potential projects for joint initiatives to work with philanthropies.

•Reinforce non-financial components to define bankability and secure profitability of these projects, so impact is sustainable and more attractive for private investors that are moving towards a more sustainable and responsible investment thesis.

•Engage with existing vehicles (such as the Multilateral Development Bank Challenge Fund)35 and enhance engagement with philanthropies to set up new and similar initiatives.

•Create clearer channels to participate in blended finance initiatives: philanthropic and private sector actors need clear procedures and pathways when looking for institutions with which to partner.