Evidence on Demonstration Effect of DFIs on Private Infrastructure Investment

This rapid evidence review highlights both academic and non-academic stances on how demonstration effects of Development Finance Institutions (DFIs) are defined and measured. It encompassed a wide spectrum of sources, including DFIs’ internal documentation, evidence syntheses, and scholarly research. It offers an examination of how DFIs define and measure demonstration effects, particularly in the context of infrastructure development, to catalyse subsequent private sector investments. Available evidence on DFI demonstration effects is presented through anecdotal case studies that shed light on the ways DFIs communicate demonstration effects and the complexities involved in measuring and attributing these effects accurately.