With shrinking aid budgets likely translating into less concessional capital for development finance, Trade and Development Bank President and Managing Director Admassu Tadesse sees room for creativity and growth for multilateral development banks.
“There’s aspects of aid embedded in development finance, but there is … a lot of market-based funding that also comes through development finance channels,” he told Devex Managing Editor Anna Gawel at Devex Impact House on the sidelines of the World Bank-IMF annual meetings.
“These special windows that need special capital, very concessional capital — those sources have really dried up, as we know, and not completely dried up, but they’ve pulled back, and so it’s a challenge, but there’s opportunities to be creative and innovative,” he explained.