27 February, 2025 – A White Paper “National Development Banks: The Unsung Heroes of the Global Development Finance Architecture” was presented by the World Federation of Development Finance Institutions (WFDFI), currently chaired by the Latin American Association of Development Financing Institutions (ALIDE), in collaboration with the global strategy firm, Momentus Global. The paper, presented the during the Finance in Common Summit 2025 in Cape Town, South Africa, underscores the urgent need for National Development Banks (NDBs) to have a greater role in shaping the global development finance architecture.

As key players in financing critical sectors such as climate action, infrastructure, education, and healthcare, NDBs play a vital role in addressing global challenges. Yet, they face persistent barriers, including limited regional collaboration, weak advocacy mechanisms, and exclusion from major decision-making forums such as the G7, G20, Financing for Development (FfD), and international climate change summits (COP).

A Unified Voice for NDBs

WFDFI, representing over 270 member institutions worldwide through its regional associations—ALIDE, ADFIAP, AADFI, ADFIMI, and ELTI—emphasizes the need for a more coordinated approach.

These associations empower development banks to drive sustainable economic growth, enhance financial inclusion, and mobilize resources for climate action and infrastructure projects, particularly for Emerging Markets and Developing Economies (EMDE).

Also, they serve as key platforms for knowledge sharing, policy advocacy, and financial cooperation, fostering regional and international collaboration. By strengthening capacity building, facilitating access to funding, and promoting best practices, they ensure that development financing institutions remain at the forefront of global efforts to address pressing challenges such as poverty, inequality, and climate change.

The white paper calls for stronger global representation, enhanced cooperation, and reinforced financing mechanisms to empower NDBs in their mission to drive sustainable development.

“Developing countries need a stronger voice in global finance, and National Development Banks (NDBs) are key to this effort. Yet, they remain underrepresented. As 2030 approaches, WFDFI aims to unify and amplify their voice, ensuring they drive inclusive and sustainable development. Strengthening their influence will unlock new pathways for global progress and a more equitable future.” — Edgardo Alvarez, Secretary General of WFDFI.

With Financing for Development 4 conference coming up in June, the UN has recognized the role of NDBs in their Zero Draft preparatory paper, highlighting how NDBs can strengthen financing in credit market segments where commercial banks are not fully engaged, including in sustainable infrastructure, energy, agriculture, industrialization, energy, agriculture, science, technology and innovation. The report also calls out the need for new regulatory frameworks, expanding the number of NDBs and leveraging resources.  

The World Federation, in relation to the call to countries in the Draft-Zero paper to reinforce capacities of PDBs, leveraging resources from MDBs and the commitment to provide technical assistance to these institutions: notes the role that regional associations of development banks can play through their capacity building programs to implement such technical assistance, as well as to strengthen the associations themselves and their federation to better fulfill their mission.

By amplifying NDBs’ voice on the global stage, WFDFI aims to unlock new opportunities for inclusive and sustainable growth, ensuring that development finance is more equitable and responsive to the needs of emerging economies.