Team Europe
EDFI is the association of the 15 European bilateral development finance institutions. Its mission is to promote the joint interests of its members, inform policy and drive innovation in industry standards. It aims to foster cooperation amongst its members and strengthen their relationship with the institutions of the European Union. BIO has been a member of EDFI since 2002.
DFIs in Europe post record new investments in 2023
Fifteen Europe-based development finance institutions in 2023 recorded their strongest year for total level of combined commitments. Together, they channelled €9.5 billion in capital to private sector clients in emerging and developing economies who would otherwise not have accessed capital for impact-rich business activity.
Despite a lumpy macroeconomic landscape and geopolitical unease, EDFI members increased new investments by 10%, bringing them beyond the pre-Covid commitment level.
- Africa remains top DFI investment destination:
Africa once again took in the largest share of total new commitments, at 40 per cent of 2023 financing and valued at €3.8 billion, up 12 per cent from 2022. - Gender finance marches forward:
DFIs continued to narrow the void between impact and finance, especially for gender finance, which climbed year-on-year by 38 per cent, reaching €2.3 billion. - Climate finance up third straight year: DFI climate finance portfolio swelled during the past three years, up 260 per cent since the start of 2020. The rise came as sales of climate-focused mutual funds fell 75% during the past two calendar years, says a Financial Times report, due to high interest rate spikes, poor fund performance and political challenges.
- Focus remains on SMEs, low-income & least-developed countries:
European DFIs in 2023 remained on impact priorities, including support for SMEs and enabling investments in low-income or least-developed countries (LICs/LDCs). Combined LIC and LDC3 activity totalled €1.2 billion, up 5 per cent, while SME commitments dipped by 3 per cent compared with 2022, reaching €2.6 billion in 2023.
EDFI Academy
EDFI Academy provides a unique opportunity for new employees of European Development Finance Institutions (DFIs) to enhance their understanding of development and impact investing. This three-day academy, organized twice a year, serves as a platform for education and networking, enabling participants to learn from industry experts and engage with their peers from various DFIs.
The European Union's ambitious Global Gateway initiative aims to turbocharge sustainable and impactful investments in regions around the world. A key instrument within this endeavour is the European Fund for Sustainable Development Plus (EFSD+).
EFSD+ provides partial guarantees that de-risk investments by European Development Finance Institutions (DFIs) and multilateral development banks. This allows them to channel more resources into crucial sectors like renewable energy, digital infrastructure, climate resilience, and healthcare.
The EU has already approved seven investment guarantee facilities totalling EUR 1.28 billion. Managed by the EDFI Management Company, these facilities empower BIO and other European DFIs to confidently invest in higher-risk projects and environments that hold significant development potential.
The EDFI Management Company itself is a collaborative platform co-owned by ten DFIs. It acts as a central hub for concessional financing from the EU, potentially attracting additional financing partners in the future.
EDFI Management Company (EDFI MC), established in 2016, manages concessional funds on behalf and for member development finance institutions (DFIs).
To maximise EDFI MC’s chances to succeed in its European ambitions, to be recognised as an important partner by the European Commission, and to ensure a better integration of the MC into the shared goal of the European DFIs to be able to handle more difficult investments, it is key that more EDFI members are shareholders of the company.
BIO has increased its stake in the EDFI Management Company, which manages concessional funds on behalf of and for member development finance institutions (DFIs).