4.0

credits

Average Course Rating

“Basically, the 19th century was the age of return (the main question being, how much will the investment bring me?), the 20th century was the age of risk-return (will the return on my investment be enough to justify the risk I take?); and the 21st century appears to be the age of risk-return-impact (how much am I risking, how much can I earn, and what is my impact?)” - Bertrand Badre, Can Finance Save the World? (2018). Bertrand wrote this in the context of the challenge facing the financial system post the 2007-2009 financial crisis; and the recognition by governments across the world that the attainment of the SDGs will only be possible with innovation in financial markets, and a massive partnership with the sources of private capital. The financial consequences of the Covid 19 pandemic are still unfolding, but it is clear that limited public resources will be stretched further. Governments, especially in developing countries, need closer collaboration with private and international capital to explore nontraditional mechanisms to finance crucial development projects. This course explores the role that Development Finance Institutions (DFIs) have today. To be effective in mobilizing capital requires that DFIs fully understand what providers of capital are looking for, and the fiduciary responsibility they have towards those whose savings they manage. The course will enable students to understand key mechanisms and instruments used by DFIs, the role of governments, private capital providers and different institutions and emerging trends in international development finance. The course will build on theoretical foundations of corporate finance and project finance to help students unpack the approaches to development financing design and structuring. The course takes a mixed approach of teaching concepts, case studies and hands-on assignments to help students build analytical skills required to launch a career in International Development Finance.