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Report

Private Capital Mobilisation: Concepts and Definitions

By establishing a common vocabulary this publication aims to support a more coordinated approach by Development Finance Institutions toward the Sustainable Development Goals.

14/01/2025

Development Finance Institutions (DFIs) can only address a small part of the Sustainable Development Goals (SDG) and Paris agenda through their own investments. A key part of the role (and therefore the impact) of DFIs is to mobilise investment from others.

Download the concept note on BII’s website here

This note is part of our Longitudinal Mobilisation Study, which focuses on the mobilisation of private capital by British International Investment (BII).

It recognises that BII’s ability to mobilise other DFIs is often an essential precursor, particularly in more challenging markets. The aim is for BII and the Foreign, Commonwealth and Development Office (FCDO) to find the most effective means of mobilising private finance in different contexts. This will enable them to improve strategic choices and maximise their influence and mobilisation activities.

The study complements the BII annual publication of direct mobilisation figures (using the Organisation for Economic Co-operation and Development (OECD) and Multilateral Development Bank (MDB) methodologies) by focusing on what we can learn about how BII mobilises – and under what circumstances – including the forms of mobilisation not captured by current reporting methods.

Read more about the Longitudinal Mobilisation Study

Mobilisation is a widely used term in development finance, covering a wide range of activities. However, there is often a lack of precise terminology, which makes it difficult to compare mobilisation activities, measure amounts mobilised, or learn lessons across organisations. To think strategically about how to mobilise more and measure progress toward that goal, it is important to start from agreed definitions and measurement methodologies.

Once those three definitions are in place, we can then measure how much private financing has resulted from the specific DFI activity(ies). Therefore, we propose a composite set of definitions and methodologies, which align as closely as possible to methodologies already used by MDBs and DFIs, while also being analytically robust, and consistent with the underlying ToCs.

By establishing a common vocabulary, we aim to ensure consistency and clarity in all future study outputs and discussions.

Download and read the full publication