WEBVTT

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Development finance isn't charity anymore.

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It's been viewed that way in the past.

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But what we're seeing,
and the data proves it,

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is that it is commercially viable.

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It's profitable.

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Lori, Qahir.
Thank you so much for being here.

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Lori, this first question is for you.

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What would it take for private investors
to be brought into emerging markets?

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Well, there are at least three things.

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The first is strong market fundamentals,
so the legal, policy,

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regulatory environment that are conducive
to private sector investment.

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Also macroeconomic stability,
a handle on foreign exchange and

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inflation, and of course,
investable opportunities.

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Depth of market for investment.

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The second bucket is around local
capabilities and market depth.

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So in addition to a skilled workforce,
we need local financial institutions and

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intermediaries,
as well as developers that are willing to

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invest in their own markets.

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So sort of a signal to private investment
from overseas.

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And we need data—that market intelligence
information to help inform investment decisions.

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And the third area is catalytic capital.

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And this is where partnerships with
development finance institutions like

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FinDev Canada come into play.

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And I'll give just a quick example,
if you don't mind.

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In 2018, we made a
$20 million equity investment

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in Climate Investor One to support energy
transition across Asia, Latin America,

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as well as Africa.

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Seven years in, they've been able to
raise $800 million,

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supporting 14 different projects.

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Six are already operational.

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This is energy transition on the ground.

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This is clean energy.

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It's diversifying energy matrix.

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And it's supporting
economic growth in those markets.

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It's a really good early example of how
catalytic capital, donor funding,

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DFI capital,
has been able to really mobilize

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additional private investment into
emerging markets.

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Qahir, the development finance landscape is changing.

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Where are the opportunities you see for
innovation and reform?

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The landscape has dramatically changed
recently, you know,

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with overseas development assistance
dropping by almost $50 to $70 billion,

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which means that private sector's role is
so critical.

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And as Lori said,
some of the fundamentals are really important.

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We need more investment in blended
finance.

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We need a better interpretation of
regulations that are—don't penalize

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emerging markets.

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We need to remove biases from country
risk ratings.

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We need local data.

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It's all stuff that we know.

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It's not necessarily new innovations,
but it's more scaling up what we know what works,

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and removing those impediments that
have held things back in the past.

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And this question is for both of you.

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If you had a message for investors about
the future of development finance,

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what would it be?

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So for me,
I think development finance in the future

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is really about unlocking private capital.

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Emerging markets and developing economies
hold the key to global growth,

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to climate innovation,
to entrepreneurship,

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but they need catalytic capital or
blended finance really to unlock that.

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So development finance institutions and
other forms of public capital are really that enabler.

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So private investors who are willing to
come to emerging markets have an

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opportunity not just to make commercial
returns but also to help the future—

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can support economic growth,
social advancement, and climate action.

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And for me,
I guess the message is development

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finance isn't charity anymore.

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It's been viewed that way in the past.

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But what we're seeing,
and the data proves it,

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is that it is commercially viable.
It's profitable.

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And so my message to investors is to
lean in.

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The risks can be managed,
and the returns are viable.

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Thank you so much for being here.

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Thank you.

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Thank you.