access to finance

African venture and private equity markets often fail to form not due to a simple lack of funding, but because of coordination failures where skilled managers, credible exits, and willing private investors are all missing simultaneously. Development finance institutions can play a catalytic role in resolving these failures, but must carefully time their interventions and design instruments that crowd in rather than displace private capital, supported by more rigorous evidence on what actually works.

Flexible financing for ‘last-mile’ distributors boosted profits across a food supply chain in Kenya.

The caste system in India discriminates against lower-ranked castes, reducing their access to finance and dampening their entrepreneurial potential. This social norm imposes significant macroeconomic costs, ultimately impeding economic development.

Access to vehicle financing in Brazil improved mobility and generated large returns (12-15% per year) through improved labour market outcomes

High-speed internet enhances the role of banks in Africa by reducing telecommunication costs and fostering the banks’ adoption of new financial technologies, such as the real-time gross settlement (RTGS) payment system

A cash grant and training programme had a range of benefits for women in Tunisia, but only improved participation in income-generating activities for women who attended training without their partner

Broadening access to finance can enable communities to adapt to large adverse climatic shocks and reduce emigration

Access to finance improved firm performance, product quality and price, but disadvantaged competitor firms

A cheap intervention increased firm registration but failed to impact tax registration, negating potential tax revenue