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New study: The use of development funds for de-risking private investment

20-05-2020 - 17:55
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The Policy Department for External Relations of the European Parliament just released a new study, at the request of the DEVE Committee, on 'The use of development funds for de-risking private investment: how effective is it in delivering development results?'

The use of ODA to mobilise private finance is seen as essential to meet the SDGs. Many development (dev.) agencies have set up de-risking initiatives to attract private investment to dev. projects and the EU is planning to scale up blending support soon. However, private shareholders may receive funds at the expense of sectors and regions most in need. Blending may also create risks for dev. agencies and recipient governments and promote the perspective of financial investors over dev. results.