Development finance allows large organizations and companies to partner with governments and communities, offering bonds in exchange for money to improve or develop a community. The investors provide working capital which allows the community to make improvements to infrastructure, water quality and access, and sanitation.
The investments act as a loan which is repaid at a designated interest rate once the development project is finished.
See also:
- A Development Finance Glossary, Adva Saldinger, Devex, 9/6/2017