Global development finance is facing the realities of a decline in foreign aid, a trend accelerated by recent geopolitical shocks and shifting administrative priorities in the global north. For impact investors, this moment demands a reality check: Private capital cannot fill the hole left by public dollars.
That’s the view of Lily Han, head of policy and innovative finance at the Soros Economic Development Fund, or SEDF. Devex caught up with her to discuss how the fund is navigating this precarious landscape, why the sector needs to prioritize collaboration over “sexy” innovation, and where SEDF is placing its bets for 2026 — from critical minerals in Africa to the intersection of artificial intelligence and independent media.
This conversation has been condensed and edited.