PARIS — Development finance institutions need a “serious mindset shift” among their management and shareholders to make the most of the opportunities that impact investment and blended finance bring, the former chief executive officer of the French development agency, or AFD, said Monday.
OECD seeks common ground on 'blended finance'
At the first annual conference on blended finance, hosted by the Organization for Economic Co-operation and Development in Paris, delegates said we need to find a common framework if we are to understand the true impact and potential of blended finance.
Speaking at the Organization for Economic Co-operation and Development’s first annual Blended Finance Conference, Jean-Michel Severino, now General Inspector of Finances at the French ministry of finance, said that even as impact-driven private sector investment grows, DFIs will continue to play a crucial role in mitigating risk in the impact market to help attract and maintain that investment. But to make the most of this role, DFI shareholders must relax their grip on maintaining a high return on investment, and evolve their thinking in a few key ways, he said.
About the author
Molly Andersmollyanders_dev
Molly Anders is a U.K. Correspondent for Devex. Based in London, she reports on development finance trends with a focus on British and European institutions. She is especially interested in evidence-based development and women’s economic empowerment, as well as innovative financing for the protection of migrants and refugees. Molly is a former Fulbright Scholar and studied Arabic in Syria, Jordan, Egypt and Morocco.
