Criticism is often levelled against development finance institutions during times of economic distress, questioning their role and even their relevance.
The post-lockdown recovery, led by China, depends heavily on the pace of the global vaccination programme and therefore the speed with which countries ease lockdowns. The World Bank estimates that Covid-19 is likely to push 110-million to 150-million people into extreme poverty by the end of this year — having to survive on less than $1.90 a day — 30% of whom are from Sub-Saharan Africa.
It is also evident as they inject upfront grant finance in the form of project preparation and municipal infrastructure maintenance programmes. In the post-lockdown period development finance institutions are looking to focus on several main areas to enable themselves to perform better. Governance — all dealings should be above board and where governance deficiencies exist, especially in sectors of interest, assistance should be provided in collaboration with others.