About DFIs


As European DFI portfolios have grown, so has their contribution to development outcomes. Their investments are concentrated in regions and sectors with high relevance for international development policy.

DFI commitments support projects that would otherwise not have obtained the same financing. A DFI will typically remain invested in projects for an extended period of five to 10 years, or longer. They track and report on the contributions that these private sector projects make to development outcomes on an on-going basis. The most important direct contributions are job creation and skills development, environmental and social outcomes, investment results, the provision of valuable goods and services, and tax revenues in developing countries.

In addition to the direct development outcomes reported at a project level, there is emerging evidence that DFI investments generate an impact that goes beyond the project direct productive activity and lifetime. Although these indirect impacts may seem difficult to assess, DFIs have started to measure them to evaluate the contribution of their investments towards reaching the SGDs. For example, the ability of DFIs to contribute to climate change goals depends on their ability to catalyse investment in energy efficiency and green technologies, not just on whether an individual project has an acceptable financial return or saves on energy use*. Indirect effects include: indirect employment effects, labour productivity, economic growth, investment, poverty and environmental impacts.

*Source: Development Finance Institutions Come of Age

European DFI’s contribution to development outcomes

Key contributions to development outcomes in 2022

– 3.7 million jobs

Some 3.7 million people are employed in EDFI-financed companies, financial institutions and funds.

  • Indirect employment effects comprise jobs at enterprises receiving EDFI financing through financial institutions and investment funds (14 million), as well as employment in the relevant supply chains (17 million) or enabled through better access to power (3 million) and finance (50 million).

– 173 TWh
of electricity generated during year.

  • Companies and projects currently financed by EDFI generated over 173 terawatt-hours (TWh) of electricity in 2022 (176 TWh in 2021).

– €20.8 billion
in tax contribution to governments.

  • Respective governments received in 2022 more than €20.8 billion in taxes by enterprises that were EDFI-financed (direct investments, financial institutions, and fund investees). Some 14.2 billion in taxes and fees were collected in 2021. The year-on-year increase was mainly due to an improved coverage ratio.


  • European DFIs for 2022 reported €4.8 billion of total private co-finance mobilisation in new investments, comprising €2.2bn of private DIRECT mobilisation and €2.6 billion of private INDIRECT mobilisation. Total private co-finance mobilisation in new investments in 2021 was €4.4 billion. 

European DFIs contribute to the SDGs:

Job creation

A key channel through which economic growth uplifts the the poor.

Investment in private sector projects

Help create and safeguard jobs and improve the working conditions for the employees.

Investments that are commercially sustainable

And catalyse capital from private investors help strengthen domestic tax revenue.