June 30, 2025
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Private capital mobilization is essential to finance sustainable development, necessitating regulatory reform and blended finance to unlock investment.
Private capital mobilization is an urgent development imperative requiring coordinated policy action, domestic financial market strengthening, and international cooperation. Obstacles identified include high cost of capital, lack of bankable projects, regulatory and institutional constraints, and elevated country and currency risk. Recommended measures focus on creating scale in investible opportunities, scaling blended finance, an enhanced enabling role for MDBs and DFIs, reforming sovereign credit rating methodologies to reflect structural strengths and resilience, and improving MSME access to credit, technology, and capacity building to unlock grassroots capital.