Amounts mobilised from the private sector by development finance interventions

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Amounts mobilised from the private sector by official development finance interventions in 2018-19 Highlights August 2021

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This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries.

This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. -------------------------

Cet ouvrage est publié sous la responsabilité du Secrétaire général de l’OCDE. Les opinions et les interpretations exprimées ne reflètent pas nécessairement les vues officielles des pays membres de l’OCDE. Ce document, ainsi que les données et cartes qu'il peut comprendre, sont sans préjudice du statut de tout territoire, de la souveraineté s’exerçant sur ce dernier, du tracé des frontières et limites internationales, et du nom de tout territoire, ville ou région. 2


Close to USD 50 billion were mobilised for development in 2018-19 by official development finance 2012-2019

2018-2019

USD billion

USD billion

50.7 46.4

4.8

10%

40.1 35.4

27.7 15.3

19.4

17.1

14.0

22.7

35%

29%

6.5

13%

2.0 4.0

4%

8%

2012 2013 2014 2015 2016 2017 2018 2019 Guarantees

Syndicated loans

Shares in CIVs

Direct investment in companies and SPVs

Credit lines

Simple co-financing

In 2012-19, USD 257.6 billion were mobilised from the private sector by official development finance interventions. The data show an upward trend between 2012 and 2018, followed by an 9% decrease in 2019. In 2018-19, direct investment in companies (DICs) or special purpose vehicles (SPVs) mobilised over a third of private finance (35%), followed by guarantees (29%), syndicated loans (13%), credit lines (10%), shares in collective investment vehicles (CIVs; 8%) and simple co-financing (4%). NB: Reporting on private mobilisation is part of regular OECD DAC data collection since 2017 but information is still collected on an ad-hoc basis for a few institutions. The increases in the amounts mobilised through syndicated loans in 2014 and DIC/SPVs in 2016 are mainly explained by improved data coverage.

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

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While mobilised private finance was evenly distributed across regions, 12% went to LDCs and other LICs Amounts mobilised from the private sector by region 2018-19 average, USD billion Europe USD 7.6 billion (16%)

Asia and Oceania USD 15.0 billion 31% Latin America and the Caribbean USD 9.2 billion (19%)

Unallocated or unspecified USD 3.1 billion (6%)

Africa USD 13.8 billion (28%)

Top recipients 3.8

2.9

2.6

2.4

By income group 2.3

2.3

2.1

1.5

1.2

India Turkey China Brazil Argen Ukraine Egypt Colom South tina bia Africa Guarantees

Syndicated loans

19.5 (48%)

UMICs

Shares in CIVs

1.2

Viet Nam

LDCs and LICs

Direct investment in companies and SPVs

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

16.1 (40%)

LMICs 4.7 (12%) Credit lines

Simple co-financing

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58% of the amounts mobilised targeted the financial and energy sectors, only 8% social sectors Amounts mobilised by sector 2018-19 average, USD billion Energy

Transport and storage Communications

Agriculture, forestry and fishing Tourism Water and sanitation Health and population Education Other social infrastructure and services Government and civil society

Multisector, cross-cutting (2%)

Other multisector

General environmental protection

Other, unspecified (2%) Guarantees

3.6 (7%) 0.5 (1%)

Syndicated loans

Other and unspecified Shares in CIVs

1.9 (4%) 0.3 (1%) 1.5 (3%) 0.7 (1%) 0.7 (1%) 0.6 (1%) 0.2 (0.4%) 0.4 (1%) 0.4 (1%) 1.1 (2%)

Direct investment in companies and SPVs

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

58%

8.3 (17%)

Industry, mining and construction

Production sectors (22%)

Social infrastructure and services (8%)

16.6 (34%) 11.6 (24%)

Banking and business services

Economic infrastructure and services (67%)

Credit lines

Simple co-financing

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Multilateral Development Banks (MDBs) remain major actors, but bilateral providers played an important role too Amounts mobilised by provider 2018-19 average, USD billion

Bilateral providers United States France United Kingdom Netherlands Germany Denmark Sweden Japan Finland Spain Austria Norway Other

0.7 0.7 0.6 0.2 0.1 0.1 0.1 0.1 0.1 0.2

5.4

2.8

1.2

MDBs 33.7 (69%)

Other multilateral providers (2.5) 5% Bilateral providers 12.3 (25%)

Multilateral providers IFC EBRD EU Institutions MIGA IBRD/IDA AsDB AfDB IADBG PIDG GEF CGIF GCF Other

0.9 0.5 0.4 0.3 0.4

1.4

2.0

2.4

3.0 3.0

3.5

6.3

12.1

Guarantees Syndicated loans Shares in CIVs Direct investment in companies and SPVs Credit lines Simple co-financing

For the purpose of the OECD statistics on amounts mobilised from the private sector, FMO is considered official, in line with the OECD DAC definition of official transactions. However, in the National Accounts System (NAS) of the Netherlands, FMO is registered as a private, independent bank. The International Finance Corporation (IFC) does not consider guarantees as part of its core mobilisation but rather as financing from its own account. For comprehensiveness and comparability purposes, however, it was agreed that the information would be presented in the OECD analyses along other institutions’ mobilisation effect through guarantees.

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

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Focus on bilateral providers USD 12.3 bn mobilised per year in 2018-19 Amounts mobilised by bilateral providers per agency 2018-19 average, USD million

OPIC (United States) Proparco (France) US AID (United States) AFD (France) FMO (Netherlands) CDC (United Kingdom) IFU (Denmark) KfW and BMZ (Germany) DFID (United Kingdom) DEG (Germany) Sida (Sweden) BEIS (United Kingdom) JICA (Japan) Finnfund (Finland) OeEB (Austria) Cofides (Spain) Norfund (Norway) SIFEM (Switzerland) BIO (Belgium) SOFID (Portugal) Other bilateral agencies

4,342 1,997 1,046 750 732 704 572 469 332 233 196 158 119 117 87 76 68 49 47 46 190

EDFIs 4,769 (39%)

12.3

Aid agencies 2,616 (21%)

OPIC (United States) 4,342 (35%)

Ministries and government departments 607 (5%)

Guarantees Syndicated loans Shares in CIVs Direct investment in companies and SPVs Credit lines Simple co-financing

For the purpose of the OECD statistics on amounts mobilised from the private sector, FMO is considered official, in line with the OECD DAC definition of official transactions. However, in the National Accounts System (NAS) of the Netherlands, FMO is registered as a private, independent bank.

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

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Energy sector USD 11.6 bn mobilised from the private sector 2018-19 average, USD million

By provider

Top 10 recipients 1,224 1,077

Bilateral providers United States United Kingdom France Germany Netherlands Sweden Denmark Austria Canada Norway Switzerland Finland Other

886 533 438 402 273 137 39 MDBs 32 8,085 (70%) 23 12 10 7 8

Other multilateral providers 695 (6%) Bilateral providers 2,800 (24%)

Guarantees

By income group UMICs

3,819

LDCs and LICs

1,225

By sub-sector 1,476 1,281 1,200 941

740 408 228 188 171 262

1,396

Non-renewable energy Transmission and distribution Policy and administrative management, unspecified

Solar 18%

Shares in CIVs

8,710

Renewable energy

1,885

Syndicated loans

5,736

LMICs

Multilateral providers IBRD/IDA IFC AsDB MIGA EBRD EU Institutions IADBG PIDG CIFs GCF Other

786 774 686 560 483 400 396 375

Wind 17%

Hydro 12%

839 635

GeoBiofuels thermal; 5% 3%

Direct investment in companies and SPVs

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

Credit lines

Natural Heavy fuel Gas; 7% oil; 1%

Simple co-financing

8


LDCs and other LICs USD 4.7 bn mobilised from the private sector 2018-19 average, USD million

By provider

Top 10 recipients 592

Bilateral providers

172

United Kingdom Netherlands

109

Sweden

108

Portugal

24 23

Germany

20

Canada

11

MDBs 3,286 (70%)

Bilateral providers 1,047 (23%)

80

1,209

IFC

946

MIGA

101

IFAD

92

AsDB

92

EU Institutions Other Guarantees

997

Banking and business services

788 464 320

Agriculture, forestry and fishing

284

Communications

60 92 Syndicated loans

1,225

Industry, mining and construction

Transport and storage

224

AfDB

145 132

By sector

Water and sanitation

806

PIDG

178

Energy

Multilateral providers

IBRD/IDA

232

Other multilateral providers 335 (7%)

49

Japan

Other

389 380 358

199

United States

Finland

493 479

284

France

84

Government and civil society

72

Other multisector

58

Other sectors Shares in CIVs

Direct investment in companies and SPVs

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

184

Health and population

191 Credit lines

Simple co-financing

9


AFRICA USD 13.8 billion from the private sector 2018-19 average, USD million

By provider

Top 10 recipients 2,129

Bilateral providers 1,184 944

France United States

537

United Kingdom Netherlands Sweden Germany Finland Portugal Denmark Switzerland Other

1,226 1,087

190 182 143 74 56 35 25 60

MDBs 9,867 (72%)

Other multilateral providers 491 (4%) Bilateral providers 3,431 (25%)

2,498

IFC

1,959 1,699

AfDB EU Institutions

MIGA PIDG IFAD GEF GCF NDF

Guarantees

217 83 68 54 2 Syndicated loans

UMICs

1,498

LMICs

5,797

Shares in CIVs

3,621

By sector Banking and business services Industry, mining and construction Energy Transport and storage Water and sanitation Agriculture, forestry and fishing Education Other social infrastructure and… Communications Other multisector Other sectors

1,300 1,284 1,196

IBRD/IDA

By income group LDCs and LICs

Multilateral providers

EBRD

638 592 493 479 471 458 380

Direct investment in companies and SPVs

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

1,019 533 494 201 190 180 169 468

Credit lines

3,041 2,803

4,691

Simple co-financing

10

10


AMERICA AND THE CARIBBEAN USD 9.2 billion mobilised from the private sector 2018-19 average, USD million

By provider

Top 10 recipients 2,367 2,331

1,461

Bilateral providers 703

France Netherlands Spain Germany Denmark Japan Belgium United Kingdom Switzerland Other

798

2,024

United States

133 95 85 43 33 30 19 16 95

MDBs 5,418 (59%)

Other multilateral providers 567 (6%) Bilateral providers 3,211 (35%)

2,313

IFC

1,429 1,077

IBRD/IDA

599

EU Institutions MIGA CIFs GEF Other

Guarantees

273 188 62 44 Syndicated loans

By income group UMICs

LMICs LDCs and LICs

8,191 505 35

By sector

Multilateral providers IADBG

384 256 247 238 163 127

Shares in CIVs

Energy Banking and business services Industry, mining and construction Transport and storage Agriculture, forestry and fishing Other and unspecified Tourism General environmental protection Education Other multisector Other sectors

Direct investment in companies and SPVs

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

586 299 140 107 48 45 32 98 Credit lines

1,486

3,398 2,957

Simple co-financing

11

11


ASIA AND OCEANIA USD 15 billion mobilised from the private sector 2018-19 average, USD million

By provider

Top 10 recipients

Bilateral providers United Kingdom Germany France Netherlands Denmark Japan Sweden Austria Korea Other

3,847

1,870

United States

425 398 334 197 130 53 46 18 13 36

MDBs 10,003 (67%)

2,614

Bilateral providers 3,519 (24%)

5,456

IFC MIGA PIDG EU Institutions EBRD

CGIF GEF GCF IBRD/IDA Other

Guarantees

2,443

UMICs

Shares in CIVs

4,679

LMICs

7,440 1,010

By sector Banking and business services Industry, mining and construction Energy Transport and storage Water and sanitation Agriculture, forestry and fishing Education Other social infrastructure and… Communications Other multisector Other sectors

814 635 595 561 427 147 136 131 81 Syndicated loans

By income group LDCs and LICs

Multilateral providers AsDB

1,181 864 599 389 383 382 376 359

Other multilateral providers 1,424 (10%)

Direct investment in companies and SPVs

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

1,019 533 494 201 190 180 169 468

Credit lines

3,041 2,803

4,691

Simple co-financing

12

12


EUROPE USD 7.6 billion mobilised from the private sector 2018-19 average, USD million

By provider

Top 5 recipients 2,865

Bilateral providers United States

171

Netherlands

149

France

129

Germany

33

Finland

28

Austria

24

Other

13

2,277

1,039

180 Bilateral providers 546 (7%)

MDBs 6,994 (93%)

Turkey

Ukraine

IFC

766

MIGA

727

500

Other

13

Guarantees

Syndicated loans

5,085 2,405

Industry, mining and construction Banking and business services Energy Transport and storage Agriculture, forestry and fishing Communications Water and sanitation Health and population Other social infrastructure and… Government and civil society Other sectors

620

52

Shares in CIVs

Bosnia and Herzegovina

By sector

4,329

EBRD

CoEB

Serbia

UMICs

Multilateral providers

IBRD/IDA

Albania

By income group LMICs

EU Institutions

835

Direct investment in companies and SPVs

Amounts mobilised from the private sector OECD statistics on development finance oe.cd/mobilisation

131 87 73 72 72 33

541

Credit lines

1,106 977

2,344 2,119

Simple co-financing

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For more information oe.cd/mobilisation http://www.oecd.org/dac/financing-sustainable-development/development-financestandards/mobilisation.htm

Contact

cecile.SANGARE@oecd.org tomas.HOS@oecd.org


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