Project Documents

Local Finance Initiative (LFI-T)

  • October 19, 2017

  • Project Documents


A key challenge in LDCs is to unlock domestic private resources to fund local infrastructure and services that have substantive impact on local economic development (LED). Even when local capital is available, banks are reluctant to fund local investments due to the perceived risks and lack of knowledge regarding this sector. LFI is designed as an investment mechanism and set of instruments to unlock domestic capital for infrastructure projects critical for unleashing the potential of local economies. It aims to bring supply and demand to an optimal level by reducing the perceived risks and transaction costs of financial services for all LED stakeholders and participants in the financial market. The overall outcome sought is to crowd in additional domestic and private capital for inclusive and sustainable LED. The aim is to structure and execute demonstration projects coupled with targeted capacity-building and build a national platform that enables the financing of local investments.

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