The leaders of the Multilateral Development Banks (MDBs) convened in Paris, hosted by the Council of Europe Development Bank (CEB), which currently chairs the heads’ group. The agenda? Advancing joint strategies to address core development challenges no small feat in today’s unpredictable environment.
They reaffirmed their commitment to system-wide collaboration, taking cues from the G20 Roadmap’s push for MDBs that are not just bigger, but more effective and responsive to global and regional needs. The goal is clear: support economic growth, job creation, and help countries achieve their development goals.
Operational improvements are in motion. This year alone, five mutual reliance agreements have been finalized, aiming to streamline project preparation and execution across MDBs. The message: fewer bureaucratic hurdles, more action.
Private capital mobilization remains front and center. The latest joint report shows a positive trend in capital flows, and the group is focused on expanding local currency lending and developing new FX solutions. Sound risk management is a top priority, with disaggregated credit risk data from the GEMs database helping guide private investment decisions in emerging markets.
MDBs are also advancing reforms in line with recommendations from the G20’s Independent Review of Capital Adequacy Frameworks. Since mid-2024, these efforts have unlocked over $250 billion in additional lending capacity, bringing the total to more than $650 billion over the coming decade.
Transparency is on the horizon, with the Global Risk and Finance Forum set to publish a Comparison Report soon. This will provide stakeholders with detailed financial metrics, supporting both balance sheet optimization and further private sector engagement.
Several high-impact initiatives are underway: Mission 300 seeks to connect 300 million people in Africa to electricity by 2030; the ASEAN Power Grid aims to enhance energy security and support decarbonization across Southeast Asia; and in Latin America and the Caribbean, MDBs are scaling digital education for millions of students and teachers.
On the social infrastructure front, MDBs are working to ramp up investment in health, education, housing, and water and sanitation. Recent cross-MDB consultations have highlighted both the importance and the complexity of these sectors in supporting jobs, productivity, and inclusive growth.
With the Fourth International Conference on Financing for Development (FfD4) in Sevilla approaching, MDBs have reiterated their commitment to aligning with country-led priorities and supporting long-term prosperity. Recognizing water’s critical role, they plan to significantly increase collective financing for global water security by 2030, with a new Joint Annual MDB Water Security Financing Report launching at FfD4. The Heads also flagged the importance of COP30 in Brazil next year.
In summary: the Paris meeting marks a step-change in MDB cooperation and reform. With operational upgrades, robust risk tools, and expanded financial capacity, the MDBs are positioned to deliver tangible results—whether it’s expanding energy access, driving digital transformation in education, or scaling up investment in water security. The momentum is real, and the impact is starting to show.