Innovative Financing Mechanisms
During recent decades, international development actors have realized the need to complement traditional development cooperation with innovative financing mechanisms, to leverage the effect of public resources available for development support, and to support financial markets to improve access to financial services for marginalised groups.
We provide a wide range of services catering to these needs. We manage a number of challenge funds and other demand-driven matching grant mechanisms – systems that facilitate the allocation of donor funds for specific purposes using competition among organizations or companies. Such funds encompass a wide range of areas including support to inclusive value chain development in agriculture and community-based forestry; business and market development for emerging entrepreneurs; enhancing access to renewable energy sources and low cost, climate-friendly technologies; capacitation and education; and support to civil society organisations in human rights and democracy interventions.
We have piloted innovative ways of promoting non-traditional mechanisms to raise complementary funds for development, such as public-private partnerships, guarantees and other market-based financial transactions.
When managing funds of this type, we provide the technical expertise needed to market the initiative, assess and select projects and partners for funding, monitor initiatives and support grantees in technical and administrative matters. Central to this are our operational and financial systems, including strict routines for disbursement, control and auditing, which are necessary to ensure a transparent and efficient management and monitoring of fund resources.