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Development Finance: Market Overview

Development finance represents a paradigm shift in international development policy. New development finance initiatives empower low-income people around the world to improve their quality of life by giving them the means to conduct basic financial transactions. Development finance initiatives are an effective way to combat poverty in a non-interventionist, market-oriented, sustainable - and even profitable - manner.

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Why Development Finance?

This shift toward development finance has proved advantageous for both investors and clients around the globe. The client base in development finance is less affected by the global economy, not only because end-borrowers are less integrated into the world economy, but also because many small and medium enterprises funded by development finance offer small-ticket items and produce essential goods, like food and clothing. Demand for such goods remains constant through recessions or financial crises.

ConCap’s Contribution


ConCap promotes development finance through granting loans and other financial instruments to Partner Financial Institutions, who then loan to either microenterprises or small and medium enterprises (SMEs). Although definitions for each enterprise type is not standardized, a small or medium enterprise is larger than a microenterprise (in terms of number of employees, sales, and total assets).