MDBs, CEOs Unite in Seville to Boost Private Investment for Development

In a pivotal step toward enhancing sustainable financing for emerging markets and developing economies, the European Investment Bank (EIB) Group, in collaboration with the Financial Alliance for Net Zero (GFANZ), hosted a high-level roundtable alongside the International Conference on Financing for Development (FfD4) in Seville, Spain. The gathering brought together the presidents of major multilateral development banks (MDBs) and private sector CEOs to strategize on unlocking and scaling up private capital investment to achieve the Sustainable Development Goals (SDGs).

Participants included the heads of:

• African Development Bank (AfDB)

• Asian Development Bank (ADB)

• Asian Infrastructure Investment Bank (AIIB)

• Council of Europe Development Bank (CEB)

• European Bank for Reconstruction and Development (EBRD)

• European Investment Bank (EIB)

• Inter-American Development Bank (IDB)

• Islamic Development Bank (IsDB)

• World Bank Group (WBG)

Alongside these MDB leaders, senior executives from leading global financial institutions and corporations participated in the discussion, highlighting the crucial role of the private sector in achieving climate and development finance goals.

Shared Commitment to Private Capital Mobilization

The roundtable focused on accelerating joint MDB–private sector action to mobilize capital at the scale needed to bridge the funding gap for global development. According to the United Nations, trillions of dollars annually are required to meet the 2030 Agenda, far beyond what public budgets and development finance can provide alone.

“We must move beyond traditional approaches and forge stronger partnerships between the public and private sectors,” said one MDB leader at the event. “MDBs are evolving to become enablers and mobilizers of capital rather than sole lenders.”

Key Focus Areas for Joint Action

The Seville roundtable yielded several priority areas for deepened collaboration:

1. Scaling Proven Public-Private Partnerships (PPPs)

Participants agreed on the need to replicate and expand successful PPP models, especially in infrastructure, renewable energy, water security, and health systems.

2. Blended Finance and Risk-Sharing Instruments

MDBs reaffirmed their role in de-risking private investment through guarantees, concessional capital, and first-loss instruments. Institutions also committed to enhancing the use of blended finance vehicles to attract institutional investors and commercial banks.

3. Local Currency Lending and Hedging Solutions

To address foreign exchange risks that often deter private capital in developing markets, MDBs pledged to expand local currency financing and hedging instruments, often in partnership with commercial banks and development finance institutions (DFIs).

4. Leveraging the Global Emerging Markets Risk Database (GEMs)

The GEMs initiative—originally established by several MDBs—was recognized as a key tool for sharing risk statistics, improving transparency, and enabling better risk assessment for private financiers in emerging markets.

5. Regulatory Engagement and Capacity Building

Participants emphasized the importance of engaging with governments and regulators to foster enabling environments for investment. MDBs and private sector actors agreed to support local capacity development to strengthen project pipelines and institutional readiness.

Continuity from Paris to Seville

The Seville dialogue builds on the Heads of MDBs meeting held in Paris just days earlier and hosted by the Council of Europe Development Bank (CEB). At that meeting, a Joint Statement was issued emphasizing private capital mobilization as a system-wide priority for the global development finance architecture.

This momentum follows the Washington Viewpoint Note (April 2024), which called for the transformation of MDB operating models to prioritize leverage, partnerships, and private sector collaboration. The consistent messaging across these meetings signals a growing alignment among MDBs on the need to unlock scale and innovation in sustainable finance.

Looking Ahead: From Dialogue to Delivery

The Seville roundtable served not only as a platform for discussion but as a launchpad for new joint initiatives, which will be refined and announced in upcoming global forums, including COP29 and the G20 Summit.

MDBs and private partners committed to:

• Joint pipeline development of bankable projects

• Shared platforms for investor matchmaking

• Metrics and reporting tools to track capital mobilization effectiveness

“The road to development and climate goals runs through private sector investment,” remarked a participant from the Financial Alliance for Net Zero. “MDBs are uniquely positioned to shape markets, reduce risk, and accelerate this transition.”

The shared outcomes from Seville reinforce a broader agenda: a global financial system fit for the climate and development era, where MDBs, governments, and the private sector act in unison to achieve impact at scale.