The convergence of multiple global shocks has created an environment of heightened uncertainty and sustained volatility, revealing deep structural vulnerabilities across economies and societies. This context underscores the need to reassess prevailing development models and the operational role of development finance institutions. Countries require a long-term, transformative agenda capable of addressing structural constraints and enabling transitions towards more resilient, inclusive and sustainable development pathways – beyond a short-term crisis response. Achieving this vision depends on strengthened international cooperation, improved resource mobilisation, effective knowledge exchange and reinforced institutional capabilities.
In this broader landscape, the Sevilla Commitment, adopted during the Fourth International Conference on Financing for Development in June 2025, is a pivotal step forward in redefining the role of national development banks within the evolving global financial architecture. The agreement calls for comprehensive reforms to enhance systemwide coherence and positions NDBs as core instruments for mobilising capital at scale to confront multidimensional crises, persistent inequality, and productivity and climate-related challenges.
Reorienting finance towards long-term investment
Development banks have expanded and modernised their institutional mandates within a mission-driven framework that integrates macro financial stabilisation, market creation and productive transformation. This evolution incorporates cross-cutting global priorities – climate resilience, digitalisation and social inclusion – reflecting the shift towards development models that rely on long-term investment, countercyclical financing and the generation of public goods. As a result, contemporary development banks operate not only as providers of financing but also as systemic enablers of economic intelligence, identifying market failures, regulatory bottlenecks and governance gaps that constrain development trajectories.
The current juncture presents a strategic opportunity to strengthen the global development finance architecture and facilitate greater alignment among national, regional and multi-
lateral actors – as well as private capital – with global development objectives. Advancing this agenda requires progress in three key dimensions.
First, access to resources managed by multilateral institutions must be simplified and operationally streamlined to ensure that NDBs participate meaningfully in decision-making and consultative platforms. This is fundamental for accelerating capital deployment towards productive sectors and vulnerable populations, particularly in high-risk segments that fall squarely within the development mandates of NDBs.
Second, there is a need to expand the supply of risk sharing and risk transfer instruments, tailored to the financing realities of developing economies. This includes mechanisms to mitigate foreign exchange risk, enhance creditworthiness, reduce project level uncertainty and crowd in private investment for long-term development priorities.
Third, countries must invest in institutional capacity building, ensuring that NDBs can design, implement and evaluate complex programmes aligned with national development strategies. Increased availability of grant-based financing for pilot initiatives is essential to support market development, data generation and knowledge creation – critical public goods that enable policy effectiveness and investment readiness.
The shifting global context also highlights opportunities to deepen collaboration among NDBs, regional development banks, multilateral institutions and private sector financing coalitions with significant liquidity. Strengthening these linkages is essential to mobilise resources at scale, accelerate progress towards the Sustainable Development Goals, and address climate and development challenges in a coherent manner.
Collective efforts for a more coherent financing ecosystem
In this regard, the World Federation of Development Financing Institutions – chaired by ALIDE and comprising AADFI in Africa, ADFIAP in the Asia-Pacific region, ADFIMI in the Middle East and North Africa, and ELTI in Europe – along with the Finance in Common initiative, plays a central coordination role. Together their work supports the dissemination of global financing agendas, peer learning and operational harmonisation across the development banking ecosystem.
These collective efforts have strengthened the visibility and influence of development banks in global policy discussions, including within the G20, the United Nations and at the meetings of the Conference of the Parties to UN agreements. Additionally, the white paper ‘NDBs: The Unsung Heroes of the Global Development Finance Architecture’, developed with support from Momentus Global, makes a strong case for granting NDBs greater voice and representation in the governance of global development finance.
With the G7 summit in évian, a critical opportunity emerges to address structural challenges such as insufficient long-term investment, unsustainable debt burdens and declining global solidarity. The évian Summit is expected to help reorient global action towards fulfilling development financing commitments, recognising NDBs as essential strategic partners in advancing sustainable and inclusive development.
