DFIs Investment and Job Creation in Low Income Countries

Abstract

Development financial institutions (DFIs) operations across their countries portfolio directly generate or support employment in the projects and companies supported by them. The extent of this impact on jobs is mixed and varies significantly across DFIs. This is mainly due to the different investment and financing instruments applied in support of SMEs (which themselves varies across countries) and infrastructure projects (energy projects and differ significantly from transport and water and ICT projects) and other interventions (e.g. compliance with labour, social and environmental standards). Understanding the differences between DFIs, their mandates and roles is fundamental to understand their developmental impacts.