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17 jan mobilisation
The document discusses work by the OECD Development Co-operation Directorate to develop an international standard for measuring private finance mobilized by official development finance interventions. So far, the work has focused on measuring direct mobilization, rather than broader catalytic impacts. Data is collected through surveys and the DAC reporting system, showing that over $150 billion was mobilized from the private sector from 2012-2017, primarily in financial services, energy, and industry sectors in Africa and Asia. Further efforts are needed to better measure impacts in least developed countries.
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17 jan mobilisation
- 1. PRIVATE FINANCE FORSUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg WORK ON MEASURING MOBILISATION Cécile Sangaré, Development Finance Analyst OECD Development Co-operation Directorate
- 2. OBJECTIVE • To developan international standard for measuring the amounts mobilised from the private sector by official development finance interventions (mandate from the 2014 DAC HLM). SCOPE • So far, the work remained limited to measuring mobilisation (where direct causality can be demonstrated), as opposed to the catalytic effect which is considered more difficult to track statistically. Further work is needed in this area (e.g. through impact indicators). CONTEXT PRIVATE FINANCE FOR SUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg BACKGROUND OECD Development Co-operation Directorate Source: OECD DAC Statistics TOSSD MEASURE WORK IS CARRIED OUT JOINTLY WITH BLENDED FINANCE
- 3. PRIVATE FINANCE FORSUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg OECD Development Co-operation Directorate Source: OECD DAC Statistics Syndicated loans Shares in CIVs Direct inv. in companies Credit lines Simple co- financing Project finance 2013 Survey 2015 Survey 2016 Survey 2018 Survey (report in 2019 Q1) Consultation with experts Consultation with experts Consultation with experts 20182017201620152013 Methodological work Methodological work Syndicated loans Shares in CIVs Guarantees Direct inv. in companies Credit lines Syndicated loans Shares in CIVs GuaranteesGuarantees Guarantees IMPLEMENTATIONINREGULAR DAC-CRSDATACOLLECTION Methodological work DATADISSEMINATION&IMPLEMENTATIONOFNEW METHODSINTHEREGULARDAC-CRSDATACOLLECTION +Workondataquality&simplification 2019 PROGRESS OF WORK ON METHODOLOGIES
- 4. PRIVATE FINANCE FORSUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg OECD Development Co-operation Directorate Source: OECD DAC Statistics PROGRESS OF WORK ON DATA COLLECTION Data are reported at the activity/project level, including geographical allocation, sectoral allocation, financial instruments, project description, climate change mitigation / adaptation Mechanism/ reporting year 2009-11 2012 2013 2014 2015 2016 2017 2018 Guarantees Survey data Survey data Regular reporting* Syndicated loans Survey data Regular reporting* Shares in CIVs Survey data Regular reporting* Credit lines Survey data Regular reporting* Direct investment in companies Survey data Regular reporting* Project finance Survey data Regular? Simple co-financing Survey data Regular? *: for a few institutions, data collection on these instruments is still carried out through ad-hod surveys.
- 5. PRIVATE FINANCE FORSUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg OECD Development Co-operation Directorate Source: OECD DAC Statistics INSIGHTS FROM THE DATA
- 6. PRIVATE FINANCE FORSUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg OECD Development Co-operation Directorate Source: OECD DAC Statistics USD 151.5 BILLION MOBILISED FROM THE PRIVATE SECTOR IN 2012-17 2012-17, USD billion 15.3 19.4 22.7 27.7 33.0 33.5 2012 2013 2014 2015 2016 2017 USD 151.5 bn 63.4 42% 26.8 18% 25.2 17% 21.2 14% 12.3 8%0.9 2% Guarantees Syndicated loans Shares in CIVs Direct investment in companies and SPVs Credit lines Simple co-financing
- 7. AFRICA 40.8 27% EUROPE 32.0 21% AMERICA 25.1 17% ASIA 35.7 24% OCEANIA 0.1 0.1% Unspecifiedor unallocable by region* 17.7 12% Top 5(47%) Nigeria, South Africa, Ghana, Egypt, Kenya Top 5 (43%) India, Pakistan, China (PR of), Mongolia,Jordan Top 5 (73%) Turkey (46%), Ukraine,Serbia, Bosnia and Herzegovina, Albania Top 5 (40%) Argentina, Brazil, Mexico, Colombia, Chile AFRICA WAS THE MAIN BENEFICIARY REGION 2012-17, USD billion Guarantees Syndicated loans Shares in CIVs Direct investment in companies and SPVs Credit lines Simple co-financing
- 8. PRIVATE FINANCE FORSUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg OECD Development Co-operation Directorate Source: OECD DAC Statistics ONLY 10% OF THE AMOUNTS MOBILISED SUPPORTED PROJECTS IN LDCs AND OTHER LICs 2012-17, USD billion Guarantees Syndicated loans Shares in CIVs Direct investment in companies and SPVs Credit lines Simple co-financing 9.3 (8%) 2.5 (2%) 43.2 (36%) 64.8 (54%) LDCs Other LICs LMICs UMICs 91%
- 9. PRIVATE FINANCE FORSUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg OECD Development Co-operation Directorate Source: OECD DAC Statistics * For 2016 and 2017, the International Finance Corporation (IFC) did not share information on the sectoral and geographical breakdowns of its private mobilisation due to confidentiality constraints. Guarantees Syndicated loans Shares in CIVs Direct investment in companies and SPVs Credit lines Simple co-financing 10.3 7.8 2.1 2.3 4.5 5.0 5.0 5.0 28.1 38.3 43.1 Information not provided* OTHER WATER SUPPLY & SANITATION MULTISECTOR HEALTH TRANSPORT & STORAGE COMMUNICATIONS AGRICULTURE, FORESTRY & FISHING INDUSTRY, MINING & CONSTRUCTION ENERGY BANKING & FINANCIAL SERVICES 72% 72% OF THE AMOUNTS MOBILISED TARGETED FINANCIAL SERVICES, ENERGY AND INDUSTRY SECTORS 2012-17, USD billion
- 10. PRIVATE FINANCE FORSUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg OECD Development Co-operation Directorate Source: OECD DAC Statistics MDB REMAIN MAJOR ACTORS, BUT BILATERAL PROVIDERS PLAYED AN IMPORTANT ROLE TOO 2012-17, USD billion 0.1 1.0 0.7 1.0 3.3 4.1 5.5 5.8 8.4 11.1 19.6 20.0 20.2 0.5 0.5 0.7 0.8 0.9 1.4 2.3 2.7 2.8 6.3 7.1 24.5 GEEREF CGIF Other CoEB AfDB Group PIDG IADB Group AsDB Group IBRD/IDA EBRD EIB MIGA IFC* Other Finland Canada Switzerland Norway Sweden Netherlands Denmark Germany France United Kingdom United States Bilateral providers Multilateral providers Funds & facilities Bilateral providers Multilateralproviders Funds & facilities 1% 66% 33% * IFC does not consider guarantees as part of its core mobilisation but rather as financing from its own account. However, for comprehensiveness and comparability purposes, it was agreed with the IFC that the information would be presented in the OECD analysis alongside other institutions’ guarantee portfolios.
- 11. 5.2 0.5 0.2 0.2 0.2 0.3 0.9 1.3 2.2 3.9 Information not shared OTHERSECTORS HEALTH AGRICULTURE, FORESTRY, FISHING TOURISM TRANSPORT & STORAGE BANKING & FINANCIAL SERVICES COMMUNICATIONS INDUSTRY, MINING, CONSTRUCTION ENERGY 0.1 0.3 0.3 0.3 0.6 0.6 0.7 0.7 1.3 4.7 5.2 Other Norway Finland Canada United States PIDG Denmark United Kingdom AsDB Group EBRD IFC AFRICA 2.7 (18%) EUROPE 2.3 (15%) ASIA 3.9 (26%) AMERICA 0.5 (4%)Unallocated 5.4 (37%) * PRIVATE FINANCE FOR SUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg OECD Development Co-operation Directorate Source: OECD DAC Statistics DEEP DIVE: DIRECT INVESTMENT IN COMPANIES/SPVs USD 14.9 billion 2016-17 (22% of the two-year total) USD billion For 2016 and 2017, the International Finance Corporation (IFC) did not share information on the sectoral and geographical breakdowns of its private mobilisation due to confidentiality constraints. By region By sector Top providers Top 10 recipient countries 1.9 0.9 0.6 0.6 0.5 0.5 0.5 0.4 0.3 0.2
- 12. PRIVATE FINANCE FORSUSTAINABLE DEVELOPMENT WEEK 15 – 18 January 2019 | #PF4SDG | https://oe.cd/pf4sdg Thank you very much for your attention For more information: cecile.SANGARE@oecd.org tomas.HOS@oecd.org oe.cd/privfin www.oecd.org/dac/financing-sustainable- development/development-finance- standards/mobilisation.htm