Mobilisation of private finance for development

Official development finance plays a strategic role in mobilising private investment to support sustainable development in low- and middle-income countries. To enhance transparency and accountability, the OECD has established an international standard for measuring and reporting the amounts mobilised from the private sector by bilateral and multilateral development actors, including towards climate action, providing a robust evidence base to inform policy and track progress.

This chart illustrates the trends in private finance mobilised through official development finance interventions by provider type (bilateral and multilateral) and leveraging mechanism. Since 2012, the data reveal an upward trend, with direct investments in companies or special purpose vehicles (SPVs), and guarantees, emerging as the primary mechanisms for mobilisation. Despite this progress, the overall volumes remain insufficient to bridge the growing SDG financing gap in developing countries. 

This chart presents the distribution of private finance mobilised by official providers (bilateral and multilateral) and leveraging mechanism across different sectors since 2012. Over the period, the data highlight a concentration of private finance mobilised in sectors such as economic infrastructure and services, as well as industry, while social sectors have attracted comparatively less financing. This disparity largely reflects perceived risks and investment barriers that continue to limit private sector engagement in social sectors.

As the climate crisis intensifies, the international community has stepped up efforts to mobilise private finance for climate mitigation and adaptation in developing countries. However, private finance mobilised for climate adaptation remains a small fraction of total climate-related mobilisation, with mitigation continuing to dominate.