Washington D.C., April 18, 2024. The International Development Finance Club (IDFC), with Serge Ekué and Javier Díaz Fajardo as co-chairs, actively participated in the “Spring Meetings 2024: From Vision to Impact” organized by the World Bank in Washington D.C. from April 15 to April 20.

During these meetings, solutions were discussed to expand financing and promote private sector investment and leverage, with the aim of addressing global challenges related to sustainable development.

According to estimates by the United Nations, actual investments amount to around $1.4 trillion, leaving a $2.5 trillion investment gap in the Sustainable Development Goals (SDGs).

The identification of this investment gap in the SDGs has led the global development community to recognize the urgent need to mobilize a larger portion of the $379 trillion in global financial assets, most of which are held by private sector financial institutions and investors, towards developing countries.

Despite efforts, private financing mobilization has not significantly increased beyond 2015 levels and continues to face multiple challenges. Available estimates indicate that official development financing mobilizes around $30 billion of private financing annually, with the majority of resources (over 70%) coming from investments in the private sector.

In this regard, the co-chairs emphasized the importance of mobilizing private capital through blended finance mechanisms that leverage both public and private resources via innovative mechanisms. This is considering that, in developing countries, internal public financial resources are insufficient to cover the needs of each Sustainable Development Goal (SDG) target.

IDFC reaffirms its commitment to collaborate with development banks and other key actors to drive private capital mobilization and achieve a positive impact on global sustainable development.

It’s worth noting that, to date, IDFC members are the largest providers of public financing for development and climate worldwide. In 2022, the Club’s financial institutions mobilized a record $288 billion in total green finance commitments. Since the Paris Agreement in 2015 to 2022 the Club members have mobilized USD 894 billion. Additionally, mitigation finances reached an all-time high of $245 billion, and climate adaptation finances stand at $31.6 billion.

Our co chairs’ speeches:

Our co-president @JavierDiazFa participated in the panel discussion coordinated by #GISDAlliance, where the Club emphasized the importance of increasing private capital mobilization through blended finance @NiklasWykman @e_cousens 🧵👇 pic.twitter.com/SceqsJQDjw

— International Development Finance Club (@IDFC_Network) April 18, 2024

As co-chair of @IDFC_Network, I discussed with @RiouxRemy, CEO of @AFD_France and @FinanceInCommon, the ways to strengthen collaboration between the Club and #FICS. Together, both can broaden the scope in key development agenda topics. #WBMeetings @WorldBank. pic.twitter.com/GZBsSWKYPg

— Javier Díaz Fajardo (@JavierDiazFa) April 18, 2024