Market dynamics are changing
Various forces are shaping the landscape for development banks. Public funds have increasingly become available for private projects, sometimes at subsidized rates. At the same time, the role of private impact investors has become more prominent as an efficient and affordable solution for banks and companies that used to be dependent on development bank funding.
FMO clients often appreciate the added value we bring to their companies: capacity development, technical assistance, Environmental and Social Governance (ESG) knowledge as well as financial expertise and networks. They also expect faster services, priced at levels comparable to other impact investors. Governments expect development banks to take a leading role in blending public funds in private projects.
Risks, opportunities and dilemmas
We feel that these forces offer a strong opportunity for FMO to catalyze other financiers in high-impact projects, by building on our record of accomplishment to manage high-impact government funds and by catalyzing ever more private investors in high-impact projects. We are increasing the efficiency of our services, while strengthening our offering, such as ESG support.