By zainab.joaque@awokonewspaper.sl
Washington DC, USA – In a landmark initiative, the leaders of 10 Multilateral Development Banks (MDBs) have announced collaborative efforts to enhance their collective impact in tackling urgent development challenges. During the recent International Monetary Fund/World Bank Spring Meetings, these MDBs unveiled a new co-financing platform aimed at channeling additional capital to amplify development initiatives.
The Global Collaborative Co-Financing Platform, spearheaded by the World Bank, comprises a digital Co-Financing Portal designed to facilitate secure sharing of project pipelines among registered co-financiers. This innovative tool is set to streamline processes, enhance transparency, and foster collaboration among MDBs, thereby identifying opportunities for joint financing more effectively.
Moreover, the Co-Financing Forum, established as part of the platform, will serve as a dedicated space for participants to engage in discussions on co-financing opportunities, share best practices, and address common challenges. It is envisioned to support ongoing efforts to coordinate policies and reduce the administrative burden on partner countries.
For countries, the new platform promises reduced administrative burdens, lower transaction costs, and better-coordinated financing aligned with their development priorities, ultimately leading to greater impact.
The heads of MDBs have committed to concrete deliverables across five critical areas:
Scaling up MDB financing capacity to generate additional lending headroom in the order of $300-400 billion over the next decade.
Boosting joint action on climate change, with MDBs increasing their collective engagement on climate-related initiatives.
Strengthening country-level collaboration and co-financing by supporting country-owned platforms to facilitate cooperation with MDBs.
Catalyzing private-sector mobilization for development goals through innovative approaches and financial instruments.
Enhancing development effectiveness and impact by intensifying focus on the outcomes of their work.
Participating MDBs in the new co-financing platform include the African Development Bank, Asian Development Bank, Asian Infrastructure Investment Bank, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, Islamic Development Bank, New Development Bank, and the World Bank Group.
This collaborative endeavour signifies a significant step towards maximizing the collective efforts of MDBs to address pressing global development challenges and achieve sustainable development goals. ZIJ/23/4/2024
