Roundtable on: Canada’s Development Finance Initiative (DFI), and official development assistance (ODA) priorities and programming Aniket Bhushan Canadian International Development Platform Norman Paterson School of International Affairs

Agenda’s are getting broader – and more $$$ (SDG, Agenda 2030, COP…) Financing requirements in multi trillions ($3t) – ODA($140bn) Investment and investable capital huge – but the plumbing is broken – disintermediation, market failures, info gaps, lack of bankable deal-flow, fin infra Ending extreme poverty is not possible through ODA + Let alone achieving other SDGs Health, educ, social protection $ gap = $140bn+ per yr; Afr infra 90bn+ Focusing only on ODA, Canada will only be a middling player, miss opportunities

Flows to developing countries

Where is Canadian investment?

DFI first movers, integrators, financiers, advisers, partners and implementers – DFI cornerstone of invest in Africa (9% of African PE vs 1.5% global); largest investors in independent power, clean energy in Africa Direct effects Products, solutions and tools that address gaps, failures Risk mitigation Leverage/crowd-in Indirect effects Signaling Informational gaps

Canadian DFI Deep engage in few vs invest, spread, across many markets (diversified); Time-frame –v long term vs income stream Where in the capital structure does it make sense Where in the cycle, risk spectrum  lead ---- co ---- follow  (lead - angel/venture) (co – mezz investor, guarantee, debt/sub-debt) (straight equity) Does it make sense to think about sectors Are there particular markets we come to with advantages What should be RoI/C, is target too early a consideration Clarify additionality Does it matter how it is funded (or the modality of what it funds) Modality with which DFI engages with Canadian constituency (CSO, private…) How DFI sits viz other Canadian dev institutions