Development Finance Agenda (DEFA) - Volume 1, Issue 3, 2015
Volume 1, Issue 3, 2015
Author Jamel ZarroukSource: Development Finance Agenda (DEFA) 1, pp 4 –5 (2015)More Less
This article sheds some light on the role of Islamic finance as a model for promoting innovative financial solutions that can play a potent role in achieving theUN recently adopted Sustainable Development Goals (SDGs). First, Islamic finance offers strong preference for risk-sharing arrangements allowing both the entrepreneur and the financier to contribute to the success of the investment. Second, Islamic finance offers potent instruments to foster domestic resources mobilization for financing productive activities. For example, Sukuk, (Islamic bonds) is a financial instrument that suits well the funding of sustainable infrastructure. Third, Islamic finance offers models for solidarity-based financing with important features of social sustainability and with the ability to alleviate poverty and increase the resilience of the poor. Overall, Islamic finance is based on the Islamic approach to social progress founded on the need for balanced development covering both material and spiritual development.
Author Aunnie PattonSource: Development Finance Agenda (DEFA) 1, pp 8 –9 (2015)More Less
Investing in companies that create social, environmental and economic value is a trend that has been increasing worldwide. This type of triple-bottom-line investing is commonly called impact investing, a market estimated to be worth $60bn worldwide in 2014 and up to $1-trillion by 2020. With 22% of global-impact enterprises located in Sub-Saharan Africa, much of the opportunity lies on this continent. The time is ripe for fund managers, asset managers, financial portfolio managers and foundation management to educate themselves about the impact investment market and how they can participate not only in creating wealth for a few, but creating opportunities for millions of Africans as well.
Next generation modeling for integrated, sustainable infrastructure in Africa : the case for Nexus modelingAuthor Sharron L. McPhersonSource: Development Finance Agenda (DEFA) 1, pp 12 –15 (2015)More Less
Closing Africa's infrastructure gap is a top priority in order to put the continent on a path for double-digit growth and sustainable development. Over the past decade, infrastructure spend has contributed to over half of Africa's growth performance. Whilst the infrastructure challenges and investment varies greatly across countries in Africa, key stakeholders from both the public and private sectors are increasingly calling for more innovative ways to finance the infrastructure gap, as well as increased investment in regional and urban infrastructure that is sustainable and that takes into consideration the nexus between sustainable water, energy and food systems. A key challenge facing stakeholders is how to appropriately map the relationships and model the dynamics that occur within integrated large-scale infrastructure projects to increase output capacity - whilst conserving scarce natural assets.
Key objectives of this paper are : (a) to shed light on recent developments in nexus thinking and nexus modeling for sustainable infrastructure development; (b) to explore the challenges and opportunities posed by existing models that utilize engineering methods and tools; and (c) to advocate for the investment and support of critical research into how exponentially growing technologies based in meta-heuristics and artificial intelligence can enable project designers and planners across Africa to "leap-frog" in their effort to conceptualise, plan, model and implement sustainable, integrated infrastructure projects.
Author Mano MuthusamySource: Development Finance Agenda (DEFA) 1, pp 16 –17 (2015)More Less
Shocking statistics from the World Economic Forum Global Risk 2014 report estimates that more than 50% of young South Africans between 15 and 24 are unemployed. The economic situation presents unique opportunities for youth to consider self-employment as a job option. Mano Muthusamy says tailor-made financial products and services which promote entrepreneurship and skills development should be seriously considered.
Author Mathieu VervyncktSource: Development Finance Agenda (DEFA) 1, pp 20 –21 (2015)More Less
Development finance institutions (DFIs) have monitoring and evaluation (M&E) systems to determine how effective their projects are in terms of their impact on development. But how accountable and beneficial are these M&E systems? This article focuses on the cases of the European Investment Bank and the World Bank Group's International Finance Corporation. It provides a framework to assess DFIs' monitoring systems, consisting of four criteria : governance, development impact, effectiveness and financial additionality. The article recommends that DFIs integrate these criteria to improve their M&E systems and that civil society organisations and other external players be invited to join discussions on the effectiveness of M&E systems.
Author Sally BrooksSource: Development Finance Agenda (DEFA) 1, pp 24 –25 (2015)More Less
There is an emerging consensus that private finance should play a major role in the post 2015 development agenda. This is consistent with the post-Washington consensus on the role public institutions as being to leverage resources from the private sector and provide an enabling environment for investment. This paper examines proposals for the mobilisation of private finance for development in the post-2015 era. It then reviews emerging research on the nature of financialisation in the agri-food system, and how and why these processes and their effects have become obscured. The political challenges this presents are discussed, with particular reference to initiatives positioning agribusiness investment as central to agricultural development in Sub Saharan Africa. It concludes that without scrutiny though a financialisation 'lens', international commitments on 'finance for development' could undermine the original vision of the sustainable development goals.
The role of development finance institutions in addressing the land tenure challenge for African smallholder farmersSource: Development Finance Agenda (DEFA) 1, pp 28 –29 (2015)More Less
This article explores the relationship between smallholder farmers in Africa, the status of their land and how this can potentially impact their access to finance. According to the World Bank agriculture employs 65percent of Africa's labour force and accounts for 32 percent of the continent's gross domestic product. Much of this agriculture comprises of smallholder farmers who are highly vulnerable. Yet, this could change if many smallholders could get secure land titling, and if this occurs Development Finance Institutions (DFIs) can play a vital role in providing further finance and other support to them.