Building bridges: case studies on successful collaboration between donors and development finance institutions

This document builds on the findings of the Bridging the gap report by exploring practical strategies and case studies for effective collaboration between donors and development finance institutions (DFIs) in frontier markets.

It highlights the importance of aligning donor and DFI strategies to mobilise investments, address market barriers and support systemic changes in challenging environments. Through 10 case studies, it showcases how partnerships between these entities can create enabling environments for economic transformation, with a focus on overcoming infrastructure gaps, regulatory challenges and investment readiness issues.

Drawing on this research, it provides recommendations for donor programmes and DFIs grouped into three categories:   

• Strategic alignment and incentivising collaboration: aligning on priorities and addressing beyond-the-firm constraints  
• Building capacity and awareness: resourcing collaboration, demonstrating the value of collaboration and including investment expertise  
• Adopting compatible operational models and tools: bridging the gap on ticket sizes, and the important of quality, relevant and flexible support 

The publication highlights the progress being made on donor-DFI collaboration and discusses the opportunities to develop deeper partnerships to deliver even greater impact.